Friday 1st February 2008
A number of financial practitioners and analysts have predicted a 0.25 per cent rate cut when the monetary policy committee (MPC) meets next week.
The MPC is due to announce its February interest rate decision on Thursday and economists are united in anticipating a quarter-point reduction.
Howard Archer, chief UK and European economist at Global Insight, and Jonathan Loynes, UK economist at Capital Economics, both expect a rate cut.
While Mr Archer observes that a more radical move is possible, he says it is unlikely based on the current state of the UKs finances.
"Last-minute data indicating that the UK growth outlook has started to deteriorate sharply could possibly prompt a 50 basis point cut," he comments.
Meanwhile, representatives from Lloyds TSB, Barclays Capital, the Royal Bank of Scotland (RBS), Moneywise and the Centre for Economics and Business Research all echo the prediction of a 0.25 per cent reduction.
RBS economist Ross Walker adds: "A 25 basis point cut in Bank Rate looks a near-certainty next week."
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