Quick links to latest articles:

1% base rate cut most likely

3 December2008

When the Bank of England's Monetary Policy Committee (MPC) announces its base rate decision tomorrow, anyone looking for a loan or mortgage will probably be watching.

After last month's surprise cut of 1.5%, economists are expecting something substantial this time. Nationwide Building Society, for example, thinks a cut of 1% is the most likely outcome.

Nationwide's 'MPC forecast probability of base rate change' sees a 15% chance of a 0.5% cut; a 15% chance of a 0.75% cut; a 60% chance of a 1% cut - and a 10% chance of a cut of more than 1%.

According to Reuters: 'Given the grim outlook for United Kingdom, analysts are expecting another big rollback in interest rates from the Bank of England after a hefty one-and-a-half percentage point cut on Nov. 6, sending benchmark rates there down to 3.00 percent.'

Whatever the decision, it won't necessarily affect the cost of loans and mortgages (except trackers) but a lower base rate would make it easier for loan providers to offer cheaper deals.

Fill in our form for your free loan quote

About your loan
Your information
By continuing, I agree to the privacy policy

Tags: base rate, loans, loan, mortgage, tracker mortgage, mortgages

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.

All About Money Limited © 2013. All rights reserved. 42 Boston Rd, Sleaford, Lincolnshire NG34 7ER.