Interest rates ‘could be lowered this week’

Interest rates may be cut by the Bank of England this week, several financial experts have predicted.

In a poll of 12 analysts, seven stated that they expected the Bank’s monetary policy committee (MPC) to lower the central rate when it meets on Thursday October 9th.

Speculation has been growing in the financial world about whether the MPC will take action to help rescue the beleaguered economy.

Martin Ellis from Halifax said that there is a “good chance” that a move will be made and Richard Walker from the Royal Bank of Scotland claimed that a change is needed to avoid a “deeper and more prolonged recession”.

However, Richard Dodd from the British Retail Consortium estimated that the MPC will bide their time and maintain the rate at its current level.

“But we hope we are wrong and would like to see a quarter point cut,” he added.

Any change in rates will have an effect on the cost of borrowing, such as mortgages and credit card debt.

By Jamie Price