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June could herald rate cut

June could herald rate cut

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The next cut to the base rate of interest could happen as soon as June, one expert has suggested.

Commenting on today's decision by the Bank of England's monetary policy committee (MPC) to hold the rate at five per cent, chief economist at Abbey Barry Naisbitt claimed that a rate cut may be an option in next month's two-day meeting.

"If the slowing in economic activity is interpreted as supporting lower inflation in the medium term, a further rate cut could be on the cards, possibly as soon as next month," he said.

However, the publication of the Bank's Inflation Report later in the month would give a clearer indication of the situation.

Rate cuts were made by the MPC in December, February and April, with another rate reduction likely to affect some homeowners, as monthly mortgage repayments could be reduced.

The minutes of May's MPC meeting, published on May 21st, could also indicate when if a rate cut is likely in June.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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