Investment Property News - Bueno Investments Limited

Economists believe interest rates could be cut to 4% by the end of 2008
after the Bank of England hinted "significant" action may be needed to
protect the UK economy.

The optimism over future cuts comes after minutes from the Bank's December
meeting revealed all nine members of its Monetary Policy Committee voted for
a quarter-point cut in rates to 5.5%.

As a result, analysts are predicting that another reduction may come as
early as January and that rates could be cut further during next year.

The MPC minutes said signs of slowing growth were already evident and that
this suggested a "substantial loosening" in interest rate policy may be
needed.

Vicky Redwood, UK economist at Capital Economics, said: "Today's minutes
suggest that we won't have to wait long for the next rate cut and that it
will be followed by plenty more.

"We continue to expect rates to fall more sharply than the markets currently
expect, to perhaps as low as 4%."

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

http://www.bankofengland.co.uk/ (Bank of England)