The Bank of England's monetary policy committee (MPC) could cut the base rate again soon, one of its members has said.
Addressing a National Farmers Union gathering in Birmingham, deputy governor of the Bank Charles Bean said the recent fall in consumer prices index inflation is likely to continue to the point where the rate will dip "well below" the two per cent target level.
He suggested that the rate-setting body "will probably need to take further action to return inflation to target in the medium term".
Such a move could help those looking to buy homes - such as first-time buyers - by lowering mortgage rates.
Professor Bean also predicted that the cuts made so far will gradually have an impact on the economy, something that could in time have a positive effect on the housing market.
Minutes of the most recent MPC meeting will be published on February 18th.
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Date Published: 16 February 2009
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