The Bank of England’s Monetary Policy Committee (MPC) is coming under pressure from all areas to cut the Bank interest rate by a whole percentage point later today.

As the UK economy continues to slow, yet inflation becomes less of a threat, retailers and financial experts alike have been offering up their view that a rate cut as drastic as one per cent is needed, while people with a mortgage are desperate for a cut that will actually be passed on by lenders.

If, later today the MPC announce that the Bank rate will fall to 3.5 per cent, it will be the first time that the Bank interest rate has been cut by one whole basis point since 1993.

“An aggressive one-percentage-point cut in interest rates is needed from the Bank of England today to shore up the economy in the face of the toll from the credit crisis and housing toll,” said The Times Monetary Policy Committee this morning.

And, according to Barclays Stockbrokers, it is not just the experts who want a one per cent rate cut, but 58 per cent of investors also believe that the Bank rate should fall by one per cent today.

Commenting, head of proposition at Barclays Stockbrokers, Barbara-Ann King, said: “With the decision on interest rates looming this week, the majority of the respondents to this poll believe decisive action needs to be taken by the MPC to help the economy.

“With only a small amount of respondents believing rates will hold at 4.5%, even a fall of half a percentage point won’t be enough for most people.”

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