(1888PressRelease)
November 24, 2007 - London (Longdogfinance) : The base rate of interest is likely to be revised downwards amidst fears of a slowing economy and fast-cooling housing market. Experts say that lower interest rates would help in boosting the economy.
A poll by Reuters predicts UK economic growth slowing down to 2.0 per cent in the year 2008, after 3.1 percent in 2007. Out of 50 economists polled, 46 see the Central bank cutting down interest rate to 5.5 per cent or lower by the end of March.
The Bank of England indicated in its Inflation Report that the economic outlook had deteriorated since the credit crunch took hold in August. The report also forecasted a worsening outlook for both UK economic growth and Inflation.
Trevor Williams at Lloyds TSB has this to say: "UK growth to recover in 2009 but the slowdown will be rapid in 2008. This will lead to rate cuts. The only question is whether the cuts are to 5.25 percent or to 5 percent."
The secured loans and mortgage market has already witnessed an increase in the interest rates since the credit squeeze gripped the UK financial markets.
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