Banking on a fall

Rates

Central banks in the US, UK and Europe came under pressure in the third quarter this year to respond to the global liquidity crisis by cutting rates. Despite the US Federal Reserve cutting its federal funds rate by 50 basis points to 4.75% in September, the Bank of England has not yet followed suit. Many people, however, believe a cut is likely both in the UK and in Europe before the year-end. The question for mortgage bankers is when an expected cut might come, and what further action might be

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