Interest rates could fall to 4%.

This year will see at least three interest rate cuts taking the interest own to 4.75%, however, if the USA enters into a recession this could fall to 4%.

How! Well the Bank of England are holding back on ate cuts due to high inflationary pressure predominantly from Energy and food stuffs. However, if the USA enters a recession that will hit consumer confidence in the UK and people will stop spending on the high street thus cancelling out inflationary pressure from energy and food therefore freeing up the possibility of further cuts.

Which ever we look at it, interest rate cuts are coming which is good news for the housing market in general.

The MPC, who decides on whethe ror not to reduce interest rates, kept the interest rate at 5.5% last month but a cut ininterest rates will occur in either February or March, with February a firm favourite.

This entry was posted on 23/01/2008 at 06:29 pm and is filed under UK Interest rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

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