The Bank of England has cut interest rates by one percentage point to 2%.
The last time rates were this low was in 1951.
The general consensus from analysts and economists was for the Bank’s Monetary Policy Committee (MPC) to cut rates to 2%.
However, some argued for even bigger cuts to below 2% to help minimise the severity of the current downturn.
This morning, JP Morgan said it believed base rates should be cut to below 1% because “inflation is falling, a deflationary scenario should be avoided – as this would be devastating to the property sector and would prompt us to lower price targets further – and the impact from a recession should be limited.”
Today, Halifax said house prices had fallen 2.6% in November, taking the annual rate of house price falls to 14.9%.
