Emergency rate cut of 0.5% - Newcastle Building Society comment

Steven Marks, lending executive at Newcastle Building Society, says:

"All the signs pointed to a rate cut and the emergency decision today is not a moment too soon to help restore market confidence.

The difficulties faced by banks and banking systems both at home and around the world in recent days and weeks, compounded with the slowing of retail spending and easing oil prices, means the authorities are now more concerned about an economic slowdown than inflation - indeed many believe we are already over the brink of recession.

I believe these fears are also likely to drive further cuts in the months ahead.".

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