Housing will be source of strength

The Bank of England continues to follow the global trend to lower interest rates. The Monetary Policy Committee is much less vigorous than the US Fed in this and retains a much higher level of rates than the ECB, but the trend is clear. With the Chancellor holding to a steady budgetary policy, averting a recession will inevitably depend on easier monetary policy. Since oil and other raw material prices have fallen sharply, the MPC can expect inflation to abate and, hence, can keep bringing interest rates a little lower. The latest quarter-point cut takes them to 4.5%, historically low fo...