Interest Rates Could Drop 1% In 2008

A prediction of rate cuts comes in reports from financial analyst, the Centre for Economics and Business Research and the European bank.

It is predicted that there will be a rate cut of quearter of a percent in January 2008, followed by 3 further rate cuts throughout the year. This would return the interest ate to 4.5% - the same as when the rates started to be put in August 2007.

Whilst not good for those with Savings Accounts and certain types of mortgages, for example fixed rate mortgages, those looking for new mortgages and on tracker mortgages should benefit.