The Bank of England’s Monetary Policy Committee announces base rates will fall to 4.5 per cent.
This is a fall to the same level as June 2004.
CML deputy director general Peter Williams says: “The rate cut will provide a welcome boost to consumer confidence and therefore help underpin the recent soft landing of the housing market. In recent months consumer confidence has been relatively weak, and data has shown households are becoming more cautious about borrowing. The rate cut will help stem the decline in consumer confidence and support the view that interest rates have peaked. It is possible that the MPC will consider future cuts, though these will need to be looked at in light of economic circumstances and inflationary pressures over the coming months.”