As <a href=”http://www.bankofengland.co.uk/publications/minutes/mpc/pdf/2008/mpc0812.pdf”>the minutes </a>of the MPC (Bank of England “rate setters” to you an I) emerged today, it became quite clear from just a quick read that we are going to see further rate cuts as we steam into 2009. Great news for those Tracker mortgage holders. the Bank of England committee voted unanimously to cut rates by 1%, as was expected, which leads me to think that further rate reductions are likely in the first few months of next year.

Only the wiltering pound seems to be saving us at the moment, as a cut of more than 1% in December could have seen our pound decline further. I am sure my Blog on <a href=”http://blog.theplace4mortgages.com/2008/12/05/could-rate-go-as-low-as-zero/”>Could rates go as low as zero</a> will be read, amended and read again in January and February as we see rates change again.

Rate cuts are fair enough, but my question still remains how lending levels will recover in 2009. Rate cuts alone will not do this on their own, so the banks need to start talking; and further measures are still needed.