Cut to Interest Rate Predicted

Thursday, 28 August, 2008

It is likely that the Bank of England will make its first reduction to the current interest rate in the latter quarter of this year, it has been claimed.

With news that may be of interest to those seeking unsecured loans, Jonathan Loynes, chief European economist at Capital Economics, said that such concerns over rising inflation had stood in the way of the Bank's monetary policy committee making this decision.

He explained that with inflation set to continue to increase over the coming months, the first rate reduction may come in November.

"We then think rates will fall quite sharply next year; perhaps to about three and a half percent," Mr. Loynes added.

In related news that may be of interest to people looking for unsecured loans, according to figures published by the Office for National Statistics consumer prices index annual inflation rose to 4.4 per cent in July, up from 3.8 per cent in June.

Source : http://www.jstfinancial.co.uk/