Brits expect rate cut

Posted: 26 Nov 2007 10:42:41 GMT

An increasing number of Britons believe that the base rate of interest will fall within the next 12 months.

An increasing number of Britons believe that the base rate of interest will fall within the next 12 months.

According to the Lloyds TSB Consumer Barometer, just 43 per cent of respondents feel that interest rates will be higher than their current level next year.

This is down on the 53 per cent who thought the same in October and comes despite concerns about prices rising.

"It's now pretty much expected - by economists and consumers alike - that the Bank of England will begin to cut interest rates in coming months," said Trevor Williams, chief economist at Lloyds TSB Corporate Markets.

"But if prices continue to rise next year, as consumers predict, this will come as little relief to many household budgets," he added.

GE Money Home Lending recently revealed that 89 per cent of mortgage brokers believe that interest rates have peaked.

The main debate over the base rate now centres on when the cut will come, with most analysts predicting a movement in early 2008.

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