More Interest Rate Cuts On Way??

'Growth is slowing quite sharply now, in part because of the rises in interest rates last year. That in itself might justify a progressive shift in policy from a restrictive to a more neutral stance,' reported Sir John Gieve, Deputy Governor of the Bank of England.

A neutral cost of borrowing is seen by many as 5%, which would mean a further 0.5% cut in interest rates. But he warned that inflation is still playing a worrying part in the current interest rates, due to the cost of food and fuel.