Builders call for interest rate cuts
2008-11-05
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.
