Sir Branson calls for 1% rate cut

News on the United Kingdom

The cost of borrowing money to buy a home abroad could fall, if the Bank of England bows to mounting pressure to lower interest rates when it meets to vote tomorrow.

Sir Richard Branson has called on the Bank of England’s monetary policy committee (MPC) to follow Australia’s lead and slash interest rates by 1%. Other UK business leaders want interest rates to be hacked by at least 0.5%, in order to help Brits cope with the existing financial turmoil.

A spokesperson for the centre of Business and Economics Research said: "With the UK economy almost certainly already in recession, the MPC should follow the Australians’ lead and cut base rates by around 1%."

The MPC has until now withstood calls to cut interest rates in an attempt to tackle rising inflation. However, it may have finally have had its hand forced.

Information provided by Homes Overseas | © PropertyIndex.com 2008 | Last Updated: 08 October 2008