Base Commercial Mortgages Limited, the specialist commercial mortgage lender, says that the Country needs a restoration of economic stability and confidence more than it needs a rate cut, which it believes could send out the wrong signals that the economy is running out of control.

Mark Davies, Finance Director at Base, said: “Rate cuts are usually welcome news, but the current dislocation between Bank Base Rate and LIBOR means that any cut the MPC makes may not actually translate into lower borrowing costs for consumers or industry, or result in lenders making available further new products. A cut, could, however, be interpreted as a desperation measure and a sign that the economy is starting to run out of control.

“What UK plc needs more than anything else is a period of stability and confidence that our decision makers are in control. Interestingly, a recent BBC survey confirms that 59% of people feel the credit crunch is making them more realistic about what they can afford. People understand they have got to tighten their belts and prepare for tougher times ahead. I suspect that what most people and businesses now crave is stability and a belief that the economy will improve and not deteriorate further. This is a time when our political leaders must be focussed on making decisions which are in the best interests of the Country, rather than the best interests of their political party.”

Despite greater inflationary pressures from rising commodity, fuel and raw material costs, Base believes the MPC should hold Bank Base Rate at 5% in June.

Information about the services available from Base can be obtained by phoning 01733 404515 or by visiting: www.basecm.co.uk