Calls for March rate cut

Published: March 05, 2008

The base rate of interest should be cut tomorrow (March 6th) in order to boost the UK housing market.

That is according to the National Association of Estate Agents (NAEA), which wants interest rates cut as soon as possible.

It would be great news for mortgage borrowers and the NAEA also believes that it would go a long way to boosting the UK's mortgages and housing markets following the global credit crunch.

The base rate of interest currently stands at 5.25 per cent, following a 0.25 percentage point reduction in December and another in February.

However, Peter Bolton King, chef executive of the NAEA, is calling on the Bank of England's Monetary Policy Committee (MPC) to announce a further reduction when it meets this week.

"The situation is by no means dire but the result could be very different if the Bank of England does not act now," he said.

New Star recently bucked the trend by forecasting that the MPC would vote 5-4 in favour of cuttingthe base rate of interest by 0.25 percentage points in March.