Base rate cuts to be limited say National Homebuyers

The Bank of England is not set to cut the base rate of interest as some analysts are predicting, potentially leading to financial difficulties for many.

[ClickPress, Mon Feb 18 2008] That is according to Legal & General, which said that it believes the prospects of significant cuts are "quite limited".

It follows the publication of the latest Quarterly Inflation Report and the forecast will be worrying for anyone who is already suffering financial difficulties.

"It is important to remember that the pound has fallen significantly in value, particularly against the Euro and Asian currencies. This will provide a stimulus to the economy by making UK exports more price competitive but it will also mean that imports will be more expensive, putting upward pressure on inflation," said James Carrick from the firm.

"The Bank of England might find it difficult to strike a balance between moderate growth and stable inflation.

"With this backdrop the prospects for significant rate cuts in the UK are quite limited in my view," he added.

Fast property sale expert Julian King adds, "Interest rate custs are unlikely to sovle most people in financial difficulty's problems.

"It will take some time for the effect of a base rate cut to be passed to the borrower. If at all".

Mr King is a director of National Homebuyers, the UK's leading quick property sale firm. The company does not require the vendor to have a Hips pack in place and completes at a timescale to suit the vendor. The company is also the leading provider of mortgage rescue solutions such as Sell and Rent Back.

Bookmark this release: Del.icio.us - Digg - Furl - Blinklist - Reddit