The Bank of England will opt to cut the base rate of interest when its monetary policy committee (MPC) meets in February, one expert has asserted.
Such a cut could bring some relief to the millions of British households struggling under the weight of a hefty debt management burden and should see mortgage repayment rates fall in subsequent months.
David Kuo, head of personal finance at Fool.co.uk, is convinced that the base rate of interest will be cut next month by the bank, as the Federal Reserve has opted to do this week in the US.
“We have already seen the Bank of Canada cut interest rates and last night Mervyn King said that here in the UK interest rates at 5.5 per cent are having a sufficient dampening effect on inflation,” Mr Kuo remarked.
“I think that if you read between the lines Mervyn King is hinting that the MPC will cut interest rates in February.”
MoneyExpert.com reported recently that debt management problems saw almost half a million mortgage payments missed in the UK over the past six months.