NAEA argues for rate cut
The National Association of Estate Agents (NAEA) has said the Bank
of England's monetary policy committee (MPC) should lower the base
rate from five per cent in its monthly meeting today.
Economists expect the MPC to announce that the rate has remained on
hold at noon, but NAEA chief executive Peter Bolton King urged the
body to lower the rate and boost the mortgage market.
He said: "We believe that a reduction in interest rates this week
will provide a pivotal way for the government to help revitalise
the current market place."
While still tipping a hold as the most likely decision, chief UK
economist at Global Insight Howard Archer said a? change was still
possible, commenting: "It is not inconceivable that interest rates
could be either raised or, less likely, cut."
The last cut to take place was in April, when the base rate was
trimmed from 5.25 per cent to five per cent.