4
Mar
Bank should 'cut rates this week'
The Bank of England should opt to cut the base rate of interest
when its monetary policy committee (MPC) meets on Thursday, the
National Association of Estate Agents has urged.
Chief executive at the organisation Peter Bolton King claimed that
some confidence may be restored to the housing sector if this
measure was taken.
While the situation is not currently "dire", many service providers
have left their interest rates above the base rate because of the
impact of the credit crunch, he remarked.
"This means consumers, especially the vital first-time buyers, are
caught in a double trap of having to find a bigger deposit and fund
higher payments against the backdrop of rising inflation," he
commented.
Banks also want improved credit ratings from customers for safety
purposes, as the financial markets have been squeezed following the
crunch, he added.
Last month, the MPC decided to lower the base rate of interest from
5.5 per cent to 5.25 per cent.