The base rate of interest will be cut by a quarter-point next month, according to the assessment of one expert.
Howard Archer, chief UK and European economist at Global Insight, has made clear his view that the financial constraints around the country will lead the Bank of England to trim the cost of borrowing in April.
Mr Archer’s assertion came in response to comments from the members of the bank’s rate-setting monetary policy committee (MPC), which noted that credit conditions are worsening and that consumer spending could soon be significantly hampered.
A fall in the base rate would be good news for many of the millions of Britons who are trying to clear debt and improve their personal financial position.
“Today’s comments by Mervyn King and other members of the Bank of England’s MPC indicate that further interest rate cuts are in the pipeline and that there is a strong chance that the next one will occur as early as April,” said Mr Archer.
Last week, Chris Tapp from the Credit Action charity suggested that British borrowers need to fully familiarise themselves with the terms of a particular deal before taking on extra credit card debt.