7Oct
CBI calls for major rate cut
The Confederation of British Industry (CBI) has called for the Bank
of England's monetary policy committee (MPC) to lower the base rate
by 0.5 per cent.
Speaking ahead of this week's monthly MPC meeting, CBI deputy
director general John Cridland said: "The CBI believes that the
Bank of England should cut interest rates by half a point when it
meets on Thursday."
He added that this represented a change in the CBI position, as it
had previously wanted a November cut but now argues the MPC should
lower the rate sooner.
Such a move could help those looking for mortgages by lowering the
cost of home loans.
Centre for Economics and Business Research economist Charles Davis
has stated that a reduction is now a certainty.
He told the Evening Standard: "It is now a question of how much,
not when they cut rates."
The last trimming of 0.5 per cent occurred in October 2001, in the
wake of the September 11th terrorist attacks.
