Friday 30 November 2007

Will December Bring Interest Rate Cut?

Economists think that interest rates will not be cut in December, with the Bank of England prefering to keep a rate cut until January or February. Therefore the pain of higher Mortgage Rates may continue for some time.

The survey concluded there was a 1 in 3 chance of a quarter percent rate cut. This is because inflation continues to rise, even though other economic indicators would otherwise push towards a rate cut.

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