5 November 2008: Investors predict full point interest rate cut

Ahead of the Monetary Policy Committee’s (MPC) decision on interest rates this week, research* from Barclays Stockbrokers reveals over half (58 per cent) of investors believe interest rates should fall by a full percentage point.  More than a quarter of investors (27 per cent) believe interest rates should fall by half a percentage point. 

The survey reveals only a minority of those polled (five per cent) think interest rates are in line for a 0.25 per cent cut.  A tenth of those surveyed think interest rates should stay the same this week.

Barbara-Ann King, Head of Proposition at Barclays Stockbrokers, says: “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.”

* Results taken from those clients who took part in a Barclays Stockbrokers web poll (1 – 4 November 2008):

‘I believe that interest rates should this week…’

• Fall by 1%:  58% (962)
• Fall by 0.5%: 27% (454)
• Fall by 0.25%: 5% (76)
• Stay the same:  10% (173)

(Total: 1665)

For further information contact:

Caroline Wells / Jignasa Patel
PR, Barclays Wealth
020 7114 7435 / 020 7699 2483

OR

Katie Hayward / Katherine Hobby
Lansons Communications
020 7294 3631 / 020 7566 9704
katieh@lansons.com / katherineh@lansons.com