Senior MPC member signals rate cut wish - commercial mortgages

18 January 2008

A senior member of the Bank of England''s monetary policy committee (MPC) has revealed his support for a cut in interest rates, a move which may help lower the cost of commercial mortgages.

Sir John Give, the Bank''s deputy governor, told the London Chamber of Commerce today that there was a strong case for a reduction in rates, which "has been greatly strengthened" by the impact the credit crunch has had on stock markets and the UK banking system.

Global Insight chief economist Howard Archer said the speech was a clear indication of Sir John''s support for a rate-trimming policy.

He added: "We suspect Sir John may well have voted for a 25 basis point cut to 5.25 per cent at the monetary policy committee''s January meeting."

The minutes of the January meeting will be published next week, revealing how each of the MPC members voted.