‘Interest Rates’ News

Interest rate cut expected

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Posted 2007-12-6

Interest rates, which have been on the rise since August 2006, are expected to be cut today by the Bank of England following the monthly meeting of the Monetary Policy Committee (MPC).  Analysts predict the cost of borrowing will drop from 5.75% to 5.5%.  Global Insight’s Howard Archer has commented that this month’s rate decision is “one of the tightest calls ever”.  One of the primary factors behind a likely cut, according to experts, is that the rate at which banks lend to one another has recently shown significant growth.  This has led to a sharp economic downturn and a repeat of the summer’s credit crunch.  Reuters reports that the decision rests on a “knife edge” as the MPC is forced to balance conflicting economic pressures. ...

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