One in two mortgage brokers believe the Bank of England will not make more than one interest rate cut this year, according to a survey by BM Solutions.
The survey shows 49% of brokers believe interest rates will not fall below 5% during 2008. However, over a third of brokers think rates will drop to 4.5%, which would require three base rate cuts. The Bank of England’s latest inflation report, which highlighted inflation as a major concern, indicates the Monetary Policy Committee (MPC) is unlikely to make drastic cuts in 2008. However, the report also predicted a sharp slowing in GDP growth as consumer confidence begins to wane and the effects of high interest rates begin to take effect. The MPC is due to announce its decision on intere...
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