Despite consumers anticipating that interest-rate cuts will take place throughout the year, it is likely that if further cuts are made they will be done so cautiously, one financial expert has claimed.
According to the Fairinvestment.co.uk, up to 29 per cent of consumers expect the rate to fall from the current 5.25 per cent to 4.75 per cent by the year end, while a further 27 per cent are anticipating a rate of 4.5 per cent or below.
James Caldwell, fairinvestment.co.uk director, said that consumers see the interest rate cuts as necessary to ease pressure on household budgets.
However, he said that making the decision to cut rates is not straightforward with various factors having to be taken into consideration.
“Therefore, it is likely that rates will be cut with an air of caution if there are to be further reductions this year,” Mr Caldwell concluded.
The Bank of England’s Monetary Policy Committee last voted to reduce the interest rate, from 5.5 per cent to 5.25 per cent, in February 2008.
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