Personal Loans

Secured Loans

Other Loan Types

Residential Mortgages

Buy to Let Mortgages

Other Mortgage Types

Mortgage Payment Protection

Life Insurance

Other Finance

Interest Rates Cut Unlikely

Further interest rate cuts from the Bank of England could not happen if its quarterly inflation report confirms rising prices amid slowing growth.

The bank delivered a quarter-point base rate cut to 5.25 per cent showing a belief that there is still room to move, but with Consumer Prices Index inflation forecast to have risen to at least 2.3 per cent in January 2008 further cuts could be some time away.

The report may confirm that a rise in prices last month could only be the start of increases.

The Bank's Governor, Mervyn King, has warned that rises in food and energy costs could send inflation well beyond the 2 per cent target, which will prompt letters of explanation to the Chancellor.

While the market is prepared, the statements from the Bank will be looked at for signs of further action to curb the slowing housing market.

With the US Federal Reserve showing willingness to cut rates across the Atlantic, the market may hold false hopes for similar strong action.
  
Reckitt Benckiser, the household goods company that owns a number of brands, is expected to reveal its qualities by posting a 14% rise in underlying profits to £1.2bn for 2007, despite a slow final quarter.

Panmure Gordon analyst Graham Jones said that during the period of negative consumer sentiment in 2001 to 2003, Reckitt managed sales growth of more than 8 per cent, adding that if Reckitt could not steer through difficult markets, "we doubt anyone can".

In a statement accompanying its new, 5.25 per cent base rate, the Bank of England said: "The prospects for output growth abroad have deteriorated and the disruption to global financial markets has continued. In the UK, credit conditions for households and businesses are tightening. Consumer spending growth appears to have eased."