Minutes released following the recent meeting at the Bank of England, where the base rate was slashed to just 3%, have hinted that a further cut in interest rates is likely. The latest reduction, of 1.5%, brought the base rate to it’s lowest level for many years.
The committee voted for the cut, earlier this month, but the minutes have revealed that a bigger reduction was considered. The opinion of the committee was that rates may need to be reduced to 2.5%, or lower, in order to inject some life back into the economy and avoid inflation falling too far below the government’s target. The news will be welcomed by debt help organisations that are expecting to see an increase in the number of consumers seeking debt advice and debt assistance programmes.
