No rate cut expected ahead of BoE announcement

The bank last cut rates in April, but a sudden jump in inflation in the same month, coupled with ongoing rises in fuel and food costs, have made it difficult for the Bank of England to justify a cut. Those with interests in the housing market have called for the MPC to cut rates to bring some relief to homeowners, who are now facing the prospect of higher borrowing costs and lower house prices. However, lending rates for mortgages have recently become detached from base rates due to the credit crunch, which may reduce the effectiveness of any cuts made by the Bank of England. Charles Was...