Interest Rates Could Fall By 0.5% in 2008

Dear Readers,

Recent news from the Bank of England indicates that interest rates could fall by 0.5% in 2008 if their latest inflation forecast proves correct. The Bank of England calculates that inflation will hover around its target rate by the end of next year.

The city has been predicting a fall in interest rates for some time now and a cut in the base rate of 0.25% could come as early as February next year and a further possible fall in the base rate possible later on in the spring.

However these interest rate cuts are by no means certain with current forecasts subject to what the bank calls "Substantial Uncertainties". With turmoil in the finacial markets, weaker economic growth at home and abroad and slower house price growth, the Bank could afford to cut rates. But with near record oil and commodity prices and plus a weaker sterling all combine to sustain inflation, at least in the short term .

I personally hope that interest rates do fall as predicted because I think that this will not only breathe some new life into the UK property market but will also ease the financial strain on home owners and landlords who are cradling large mortgages.

I will finish by saying lets all keep our fingers crossed!

Invest wisely

Grant Delmege

Zone 4 Property

http://www.zone4property.co.uk