National Homebuyers: 'King dashes homeowners' hopes of large interest rate cut'

Bank of England governor Mervyn King has dismissed the possibility of the Bank cutting interest rates in a similar way to the US' Federal Reserve, according to reports.

[UKPRwire, Thu Apr 03 2008] The governor said that while the current economic climate made a cut in the interest rate a distinct possibility, it will not be a large slash of rates as has been seen across the Atlantic, suggesting consumers could still face financial difficulties.

Speaking to the Treasury select committee to discuss the February inflation report, Mr King said the Bank had a "difficult balancing act" if it was to meet its inflation targets, predicting inflation could hit three per cent in the coming months.

"Surveys suggest that the economy has slowed, but so far modestly," Mr King said. "The world economy, particularly the US, has weakened."

He also stressed however, that it was "important for people not to confuse a slowdown in the world economy with words like depression".

The current rate of interest is 5.25 per cent, with the next decision due on April 10th.

David Harber from fast property sale leaders National Homebuyers adds, "We feel that even if there were a large cut in the base rate, the banks would be reticent to pass it on to borrowers quickly.

"Homeowners needing a quick property sale are advised to look at options away from the open market as the costs, delays and uncertainties of selling on the open market do not afford people the quick property sale they require".

Mr Harber is the Operations Manager of National Homebuyers, the UK's leading fast property sale firm. The company is also the UK leader in the Sell and Rent Back industry.

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