Royal Bank of Scotland (RBS) Expects Further Rate Cuts
Dec 01, 2008 | Comments 0
Economist at the Royal Bank of Scotland (RBS), Andrew McLauglhin, said that the Bank of England and the Monetary Policy Committee (MPC) are expected to cut rates again this Thursday.
RBS Chief Economist also hinted that the reduction In VAT will not do anything to encourage spending and expects the BOE to cut interest rates again this week both in the Eurozone and Uk.
The bank’s economist also warned that further rate cuts may not do anything to prevent the destructive de-leveraging even though it is thought of as a positive move.
In Alistair Darlings pre-budget report last week he announced that VAT would be cut from 17.5 percent to 15 percent. But with the country’s finances being forced further into the red its widely thoughts that the VAT reduction will do nothing for the economy but that, with the savings on most purchases being extremely modest.
Source:doforline
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