UK base rate cut to 5%

The MPC has been walking a tightrope in recent months between fighting inflation and keeping the economy on track, but bad news on house prices earlier this week raised the likelihood of policy action sooner rather than later. Commenting on the move, David Roberts, joint head of fixed income at Aegon Asset Management, said: “We were not surprised by today’s announcement of a 25 basis point cut. Although inflation data has been elevated in recent months, the likelihood is that this is transitory. Of greater threat to the UK economy is the ongoing impact of tighter credit conditions on consu...