4% base rate cut ‘important’

24 October 2008

A further half-point base rate cut to 4% would be an “important step” towards achieving and maintaining economic stability, a leading body has said.

Commenting on minutes from the Bank of England’s Monetary Policy Committee (MPC), David Kern of the British Chambers of Commerce (BCC) announced: “We strongly believe that a further cut in interest rates to four per cent in November would be an important step aimed at alleviating the severity of the recession and to help restore business and consumer confidence.”

The half-point base rate cut in October was considered by many analysts to be a significant move, reflecting the seriousness of the danger facing the economy – and it was the first time the rate had been cut by half a point since November 2001.

A spokesperson for Think Money said: “Any base rate cut could help both businesses who rely on credit and individuals who are looking for (or already have) personal loans and mortgages.

“However, many analysts have expressed the opinion that a drop in interest rates is unlikely to lead to lenders easing their lending criteria just yet. With that in mind, people looking for a loan should seek professional advice from an expert loan adviser who can help them find the best possible deals.”

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