5Nov
FMB in two per cent rate cut call
The Federation of Master Builders (FMB) has called for the Bank of
England's monetary policy committee (MPC) to undertake the radical
step of cutting the base rate by two per cent tomorrow.
Following last month's 0.5 per cent rate cut, the MPC is expected
to lower the base rate by at least as much tomorrow, with all 62
economists polled by Reuters forecasting this.
However, director general of the FMB Richard Diment said that only
a huge cut would be enough to revitalise the building industry,
commenting: "Dramatic economic conditions require dramatic, bold
steps."
Such a reduction could help lower the cost of mortgages.
The lowest level the base rate has been at since the MPC was formed
in 1997 was 3.5 per cent during 2003.
In that year, the MPC trimmed the rate to this level in February,
before raising it by 0.25 per cent in July.
