Bank tipped for triple rate cut

The Bank of England will cut interest rates three times by April 2008, it has been forecasts, news that may have an impact on the state of the house building industry.

Barclays Stockbrokers said the recent downturn in the housing market was one of the reasons, along with poor retail sales and a tightening of credit conditions, for such a policy to be necessary.

It said the pressure had been "building and building" for a cut, adding: "We expect a quarter point cut on Thursday and further quarter point cuts in February and April, taking interest rates back to 4.75 per cent."

Barclays' view is at variance with that of the majority of economists polled by Reuters about the decision.

Of the 63 it quizzed, 51 predicted rates would stay on hold, with 12 tipping a cut.

The meeting of the monetary policy committee begins today and will announce its decision tomorrow.


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