CML and Rics welcome Bank rate cut
Friday, 7th November 2008

The decision by the Bank of England to cut the interest rate by 1.5 per cent to three per cent has been applauded by two major industry organisations.

Director general of the Council of Mortgage Lenders (CML) Michael Coogan praised the Bank's decision by saying that it has "grasped the nettle" in a worsening financial environment, labelling the move "strong and decisive".

It would also help facilitate a drop in borrowing costs from lenders, he continued.

The Royal Institution of Chartered Surveyors (Rics) agreed with the sentiments of the CML, noting that the move showed the Bank's recognition of the economic downturn's severity.

It also highlighted the beneficial effects the move would have on consumer confidence, although it acknowledged that it would not be restored quickly in the short-term.

Furthermore, those on standard variable rate mortgages would be able to "breathe a sigh of relief" as their mortgage rates would become more affordable, a spokesman for Rics said.