Rics predicts future bank rate cuts

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Rics predicts future bank rate cuts

Thu 6th Mar 2008

The Royal Institution of Chartered Surveyors (Rics) has commended the Bank of England's decision to leave interest rates untouched at 5.25 per cent, saying it is "appropriate" for the current economic circumstances.

It notes that although the housing market is weakening, other parts of the economy are still doing well.

Rics also points to the fact that rising food and energy prices need to be kept in check, describing them as "a serious risk which can't be discounted too lightly".

However, the organisation predicts that the impact of the credit crunch will not only been felt by the property market, but will spread to other parts of the economy, forcing the Bank's Monetary Policy Committee to cut rates further.

It expects that the next change in interest rates will come in May.

Rics said last week that it expects UK house prices to continue to decline during 2008.

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