Base rate cut expected by Brits

An increasing number of Britons now believe that the base rate of interest will soon be cut.

The latest Lloyds TSB Consumer Barometer shows that confidence of a cut is growing.

It reveals that just 43 per cent of respondents believe that the base rate of interest will be higher in 12 months' time than it is now.

That figure is lower than the 53 per cent who thought the same in October and is a clear sign that confidence is growing.

"It's now pretty much expected - by economists and consumers alike - that the Bank of England will begin to cut interest rates in coming months," said Lloyds TSB Corporate Markets' chief economist Trevor Williams.

"But if prices continue to rise next year, as consumers predict, this will come as little relief to many household budgets," he added.

GE Money Home Lending recently revealed that 89 per cent of mortgage brokers believe that the base rate of interest has peaked.

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