Builders call for interest rate cuts
05 November 2008
The
Home Builders Federation (HBF) is calling on the Bank of England to
lower interest rates by one per cent at the Monetary Policy
Committee's monthly meeting tomorrow.
It says that following this, the government must ensure that the
slashed rates are passed on to consumers in order to assist the
flailing property market.
Following a rate cut tomorrow, the federation then hopes to see
further falls down by two per cent as soon as possible.
Stewart Baseley, executive chairman of HBF, said: "The time has now
come to cut interest rates decisively and then ensure the cuts are
passed on to consumers.
"The worsening state of the economy means that any lingering
concerns about inflation are far outweighed by the need to boost
the housing market, so critical to the health of the wider
economy."
He added that the group had welcomed the action taken by government
last month to support the banking system and encourage lending.
