WE’RE not surprised the Bank of England is facing calls for a one per cent cut in interest rates this week.
Some experts believe such a cut would reduce the threat of a lengthy recession.
It would be a very bold move and one which might just work.
These are tough times and it requires tough action.
With economists, house builders and business leaders all calling for this substantial cut, they must truly believe it work.
We understand the need for the Bank of England to have a grip on inflation, but kick-starting the housing market would easily outweigh those inflation concerns.
Although every country is facing similar difficulties, Britain just needs to look at America where interest rates stood at 5.25 last year but after a series of reductions now stand at 1 per cent and there are early signs it is having some effect.
If it can work there then it can work here.
Whatever the Bank of England decides this week will have many repercussions over the coming months, if not years.
We hope it can help ease the pain for so many and maybe even go some way to averting a full-blown recession.
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