Bank of England poised to cut interest rate by at least 0.5 percent

The Bank of England (BoE) is likely to cut the interest rate to their lowest level on record this week. It’s widely expected the BoE with cut the rate by at least 0.5 percent to 1.5 percent.

The Central bank’s Monetary Policy Committee on Thursday ends it’s two day meeting and will announce the cut, some analysts are predicting as much as 1 percent being cut from the interest rate.

It’s also expected that Britain will see another interest rate cut in February, taking the base interest rate below1 percent, this is a huge sign that interest rate will stay low for a long time as the Bank of England tries to soften the blow of the recession.

With house prices continuing to fall, and consumer confidence worsening day by day is unlikely interest rate cuts will lift the UK out of the recession, with the Government suggesting more tax cuts in March and the possibility of going down the route Japan took a decade ago by boosting money supply, but this is said to be a long way off before Britain resorts to those measures.

Source: Reuters

Exorcist: The Beginning ipod