10
Dec
MPC member suggests recession will be like 1990s
Expectations of further base rate cuts in the near future may be
strengthened by the comments of one of the people responsible for
the decision, Bank of England monetary policy committee member
Andrew Sentance.
In a speech yesterday, he said the recession is on course to be of
similar severity to those of the mid 1970s, early 1980s and early
1990s.
The comments came on the same day that data from the National
Institute for Economic and Social Research indicated that gross
domestic product dropped by one per cent in the three months to
November.
While the economic news may not be bright, further rate cuts in
response to the downturn could lower the cost of mortgages,
boosting the housing market and first-time buyers in
particular.
Details of how Mr Sentance and each of his colleagues voted this
month will be revealed when the minutes are published on December
17th
