CML predicts rate cut in November

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CML predicts rate cut in November

Fri 5th Oct 2007

The Council of Mortgage Lenders (CML) has said that it anticipates the Bank of England's monetary policy committee (MPC) will cut the base interest rate next month.

According to the CML, this week's decision to hold rates at 5.75 per cent was expected, but the rate could be lowered in November.

Michael Coogan, CML director general, commented: "We did not expect the Bank to cut rates today, but we do hope for and anticipate a cut in November.

"Even this is not a certainty though, so borrowers should continue to plan for rates at or around current levels."

He added that "there is still uncertainty" about the length of time needed to restore stability to the sub-prime market, but added that "the availability of funding does seem to be improving".

Meanwhile, Abbey echoed this optimism about the potential for a rate cut in the near future, citing decreasing inflation as a probably factor for the decision.

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