Base rate cut will have to wait, say economists

Those planning on moving home soon may wish to consider their options after the chances of an imminent base rate cut were dismissed by an economist.

Following news yesterday that the minutes of this month's Bank of England monetary policy committee (MPC) August meeting had shown no change in voting from July, Jonathan Loynes of Capital economics said it looked probable that David Blanchflower will remain the only supporter of a rate cut for the time being.

He commented: "There is little here to suggest that other members are about to join Blanchflower in voting for a cut in the very near future."

Mr Loynes did, however, say a rate cut is likely at the back end of 2008.

A similar view was expressed by Lehman Brothers economist Peter Newland.

He told Interactive Investor that the next base rate reduction is most likely to be in November.