Call made for successive interest rate cuts

The British Chambers of Commerce (BCC) has urged the Bank of England's monetary policy committee (MPC) to trim the base rate again in March, a move which would bring it down to five per cent.

David Kern, the BCC's economic advisor, made the call today, arguing that the economic situation had worsened since the last meeting of the MPC.

He said: "The markets expect the MPC to keep rates on hold in March, but the need for a further early cut is very clear."

However, those hoping for such a move to lower the cost of mortgages may be disappointed, as the last time the MPC changed the rate in successive months was in 2004.

The last meeting to be held the month after a base rate cut - January 2008 - saw an eight to one vote against any change.

Some may consider self build a better financial option than hoping for cheaper mortgages this month.


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