Interest rate cut hopes increase October 2nd, 2008
News that banks are looking to further tighten their lending criteria and the ever reducing number of new mortgage approvals raises hopes that the Bank of England will cut interest rates.
The Bank was widely expected to reduce rates in November from 5% to 4.75%, but the news of further economic slowdown could prompt the decision to be brought forward to October when the Monetary Policy Committee meets next week. Longer term predictions suggest that interest rates could fall to 3.75% by the end of 2009.
