The Royal Institution of Chartered Surveyors (RICS) has welcomed the Bank of England decision to cut interest rates but said it was unlikely to make much difference to lending levels.
The Bank slashed interest rates this morning to 1.5%, the lowest level in its 300 year history.
The 0.5% rate cut is the fourth since October, when interest rates stood at 5%.last three months that output is likely to continue to fall steeply in the first part of the year.
RICS chief economist Simon Rubinsohn said: “The decision to lower interest rates today to just 1.5%, while welcome, is unlikely to provide any meaningful encouragement for banks to increase the availability of finance to either households or businesses. Indeed, the risk is that lenders are set to become even more restrictive over the coming months in the face of the worsening economic climate.”