Investment Property News - Bueno Investments Limited

Those caught in the global credit crunch fallout have been told to expect a Bank of England interest rate cut later this week.

City experts predict Bank of England will cut rates by quarter of a percentage point to 5% at its monthly meeting on Thursday, despite the impact that such a move could have on inflation.

It will be the Bank's third rate cut since December, although homeowners have struggled to benefit so far after tighter credit conditions caused nervous lenders to withdraw products and increase rates on many ranges.

Members of the Bank of England's monetary policy committee (MPC) will be concerned the current uncertain conditions could feed through into sharply lower growth in the UK economy.

Howard Archer, chief economist at Global Insight, said he expected rates to finish the year at 4.25%.

"We believe that the increased downside risks to growth stemming from tighter credit conditions, coupled with signs that the economic downturn could be deepening, will lead the MPC to cut interest rates from 5.25% to 5% on Thursday, despite the inflation pressures."

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http://www.buenoinvestments.com/uk_property_investment.php (UK Property)

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