AMI predicts base rate cut on back of credit squeeze

The Association’s Quarterly Economic Bulletin predicts the base rate has peaked following the credit crunch. In addition, the report says inflation is likely to fall back below target quicker than expected while pointing out mortgage approvals are “firmly on a downward trend”. The AMI also says non-mainstream lending is showing the biggest declines but adds variable rates are coming back into fashion as borrowers predict rate cuts. Richard Farr, AMI director, says: “The AMI Quarterly Report is designed to give members an overview of the key economic data and trends, while focusing spe...