Interest Rate Decisions

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The fact that the Bank of England (BOE) has slashed interest rates by 1.5% to 3%, I think shows how worried they are about the British economy. In a Bloomberg survey of 60 economists, nobody had predicted such a large cut in one go. You would be forgiven for wondering what the reasoning behind this decision is when inflation has reached over 5%, and the BoE are supposed to target 2%.
Rising residential prices and interest rates have home buyers hanging on a loose rope, and sooner or later something is going to give.

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