News Article - 07 January 2009
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Businesses may find that the monetary policy committee's decision on the base rate of interest - expected to be announced tomorrow (January 8th) - may have an effect on their productivity when it comes to setting business goals for the new year.

A recent poll of economists, financial institutions and business organisations conducted by the news agency Adfero came to the unanimous decision that the Bank of England committee would cut interest rates again this month.

The rate currently stands at two per cent - following a cut of 1.0 per cent in December.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said: "The cut will be driven by continuing deterioration in the economic news flow - weak retail sales, falling house prices, job cuts and the inability of businesses to access bank finance."

Meanwhile, Ross Walker, economist at Royal Bank of Scotland, predicted the outcome to be a 50 basis point cut.

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