Shadow MPC advocates 1% base rate cut

Members of Mortgage Strategy\'s GE Money Home Lending Shadow Monetary Policy Committee are calling for a 1% rate cut ahead of the official decision this week.

The majority voted for a 1% cut as the industry grapples with the after-effects of the pre-Budget report and the implications of the Crosby review.

Chris May, director of Vision Network, thinks the rate cut may be even higher.

He says: “The MPC cut rates too late so I’m voting for a further 1.5% reduction as we are still playing catch-up.”

And Dev Malle, sales director at Personal Touch Financial Services, adds that a further cut will provide extra stimulus and momentum.

Only one member of the committee voted to hold rates at 3%.