Pressure is mounting on the Bank of England to cut the base interest rate as soon as possible, it has been posited.
Global Insight, an economic, financial and political forecasting company, has claimed that weak data and survey evidence suggests that "the economic downturn is deepening".This follows a recent report from the British Bankers' Association, which showed that all forms of mortgage approvals weakened in March, reaching the lowest point since 2000.Howard Archer, chief European and UK economist at the firm, explained that this data related to the housing market in particular, as well as consumer confidence, retail sales and manufacturing activity."An interest rate cut from five per cent to 4.75 per cent is certainly possible at the Bank of England's [meeting] next Thursday," he said.Mr Archer went on to add that the monetary policy committee may be less inclined to reduce the interest rates through fear of inflation."However, further weak data next week could yet trigger an interest rate cut on Thursday," he concluded.
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