Bank of England expected to cut Interest Rates

The Bank of England is widely expected to cut Interest Rates by 0.25% when the next announcement is made on February 7th 2008.

Some experts have predicted that the cut could be 0.5% which would be seen as a significant message from the Bank of England that they are fighting to stop the UK entering a recession.

A rise or drop in the Interest Rate is often by just 0.25% either way but the Federal Bank of America shocked the World in January 2008 by clashing rates by 0.75% and the pressure was put on the Bank of England to make emergency cuts. Emergency cuts didn't happen but it will be amazing if a reduction is not seen in February 2008.

Depending on which "experts" you believe some predict we could see as many as 5 reductions in Interest Rates in 2008 - while others say we will only see 2. The Bank of England is under pressure from the Government to keep an eye on inflation so will be against making any radical or hasty decisions like, what some believe, the Federal Bank of America did.