Former Bank of England policy maker Willem Buiter sees the Bank of England cutting rates a hefty 150 bps this week. Buiter, in a speech to the Council of Mortgage Lenders today, said “the deterioration of sterling we’ve seen so far has been extremely welcome from the British point of view.” He did conceed however that the pounds’ drop is possibly “one of the things that could stay the hand a bit of the MPC”, but he feels that while there is the risk of a currency crisis it is “not highly likely” and he feels the bank will in the end plump for an aggressive 150 bps cut.
Mr Buiter correctly predicted last months shock 150 bps cut.
