Consumers want more rate cuts

Fool.co.uk welcomes the Bank of England's decision to slash interest rates by 1.5% to 3%. Hopefully, this is the first of many bold moves that the Monetary Policy Committee will make in the coming months.

A recent survey by money website Fool.co.uk reveals that, on average, consumers expect interest rates to fall to 2.85%. Four out of five people (78%) hope that rates will be cut to below 3%, and one in three (31%) expects rates to be reduced to below 2%. One in a hundred (1%) wants to see the Bank of England base rate fall to 0%.

David Kuo, Head of Personal Finance at Fool.co.uk, says: "There are now numerous signs that the UK economy is struggling. It is in desperate need of a jolt to shake it back into life.

"More importantly, the central bank must be seen to be fulfilling the expectations of consumers. This is vital if interest-rate cuts are to provide consumers with instant gratification.

"As it stands, the Bank of England rate cuts have not been fully passed onto consumers. In time it will, but only if the Bank continues to cut hard and cut fast. This is no time for holding back if the Bank of England is determined to breathe life into the dying economy."