Comments on: Bank Of England Base Rate Predictions http://www.findfinancialfreedom.com/92/bank-of-england-base-rate-predictions Your guide to getting yourself out of debt and out of the rat race Fri, 30 Jul 2010 10:51:28 +0000 http://wordpress.org/?v=2.5.1 By: Tristan http://www.findfinancialfreedom.com/92/bank-of-england-base-rate-predictions#comment-3463 Tristan Fri, 30 Jan 2009 14:09:52 +0000 http://www.findfinancialfreedom.com/92/bank-of-england-base-rate-predictions#comment-3463 I agree with your predictions for next month, I think that the rate will come down to 1% next month, though I don't think it will come down again the following month. I think once it gets to 1%, the Bank of England, and also the government will want to see what effect the low rates are having on the economy, so will probably wait until April/May, after the first quarter GDP figures are released, so that they can see what the effects have been. If growth is still negative, and that will be three quarters in a row, then I think the govt and the Bank of England will work together to stimulate the economy even more than they are doing - heaven knows what that will mean, most likely more public spending and borrowing to pay for it! I agree with your predictions for next month, I think that the rate will come down to 1% next month, though I don’t think it will come down again the following month.

I think once it gets to 1%, the Bank of England, and also the government will want to see what effect the low rates are having on the economy, so will probably wait until April/May, after the first quarter GDP figures are released, so that they can see what the effects have been.

If growth is still negative, and that will be three quarters in a row, then I think the govt and the Bank of England will work together to stimulate the economy even more than they are doing - heaven knows what that will mean, most likely more public spending and borrowing to pay for it!

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