A recent poll of 13
financial analysts has returned a unanimous prediction that the Bank of England's Monetary Policy Committee (MPC) will cut interest rates tomorrow (January 8th).
With the decision expected at noon and the base rate of interest currently standing at just two per cent, the Adfero poll found that a further cut is expected in the hope that banks increase lending.
The panel, which included the likes of HSBC's Steve Green, CEBR economist Arek Ohanissian and Global Insight's Howard Archer among others, revealed that some believe the cut could be as much as one per cent.
Lloyds TSB chief economist Trevor Williams said it was difficult to call but he was almost certain that the MPC would cut the rate again.
"They're clearly going to cut; the question is how much - anything between a half and one percentage points," he predicted.
"I think if they want to remain ahead of where markets are looking for and maybe get to where they want to be quicker, and so get the stimulus in and front-load it, then I think they'll do one percentage point cut."
The Bank of England uses the base rate to control spending and therefore inflation in the UK.
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