ADM INVESTOR SERVICES
I think on balance they should keep the interest rates where they are. I don’t think it will stimulate spending at all. It’s not suddenly going to pour money into people’s pockets, unless mortgage rates come down on the back of it.
I can’t see the benefit in cutting them more as they are next to nothing anyway. I think people are cautious at the moment – they’ve got their money stashed under their beds and that is where they are going to keep it.
Rates are low as they are right now so I don’t know what effect cutting them again would actually have. I don’t think it will increase consumer borrowing any more. Much more is dependent on banks’ willingness to lend.