MPC looking unlikely to cut interest rates further

Despite relatively aggressive interest rate cuts by the Monetary Policy Committee this year, fund managers do not expect further action in the foreseeable future, unless dictated by international events. On 10 May, the Bank of England's Monetary Policy Committee cut interest rates by 0.25% ' the third such decrease this year ' bringing the cost of borrowing down to 5.25%. Since the previous cut, on 5 April, there had been signs that the US economic slowdown has spread to Europe, prompting the European Central Bank to cut rates to 4.5% on the same day. Trevor Green, a UK fund manager...