Commenting on the choices facing the MPC at its December 2008 meeting next Thursday, David Kern, Chief Economist at theBritish Chambers of Commerce (BCC), said:

“Following the disappointing reaction to the PBR it is critical for the MPC to persevere with aggressive interest rate cuts. To alleviate the worse consequences of the recession, we urge the MPC to cut rates by a full one per cent on Thursday, to two per cent. Additional cuts will be needed in the early months of the New Year, probably to one per cent.”

Paul Cowdery, Conveyancing Partner, comments:

“Although interest rate reductions are unlikely to produce any immediate recovery in the housing market, the hope is that more competitive and realistic mortgage products will come on line sooner to fuel the property market.  This process may well be assisted by the “nationalisation” of the Royal Bank of Scotland (RBS).”