More analysts expecting multiple rate cuts

The Bank of England has published minutes from the latest Monetary Policy Committee (MPC) meeting, and while just two members voted for an interest rate cut in November, analysts are increasingly of the opinion that several cuts will take place in 2008.

Global Insight has said that it now sees the Bank cutting rates three times by the third quarter of next year, an update on its previous prediction of two cuts by May 2008.

BNP Paribas economist Alan Clarke had previously told the Daily Express that "two or three" cuts were now to be expected next year.

"Whether or not the MPC acts in December or waits until early 2008, we now expect the Bank of England to trim interest rates three times by the third quarter of 2008, taking them down from 5.75 per cent to five per cent," predicted Howard Archer, chief UK and European economist at Global Insight.

The Bank's minutes showed that the MPC had voted 7-2 in favour of keeping the base rate at 5.75 per cent this month.

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