Rate cuts 'not fast enough'

A former member of the Bank of England's monetary policy committee (MPC) has suggested the Bank has not acted decisively enough to reduce the base rate.

In an interview with Bloomberg, DeAnne Julius, an MPC member from 1997 to 2001, said the Bank's governor Mervyn King was "behind the curve" on rates.

She added: "If I were still on the committee I'd be voting for a half-a-point cut."

However, the MPC has resisted all previous calls to trim the base rate by more than 0.25 per cent, a quarter of a point being the amount shaved off in November 2007 and February this year.

Some may decide that instead of hoping for major reductions that could ease the cost of mortgage borrowing, the best policy could be to opt for self build instead.

The next meeting of the MPC is scheduled for April 9th and 10th, the Bank of England website states.


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