	analysts see early one point cut in u k base rate british bank base lending rates are likely to fall by as much as one full point to pct this week following the sharp three billion stg cut in the u k central government borrowing target to four billion stg set in today s budget bank analysts said the analysts described chancellor of the exchequer nigel lawson s budget as cautious a quality which currency and money markets had already started to reward sterling surged on foreign exchange markets and money market  rates moved sharply lower as news of the budget measures came through the analysts said lloyds merchant bank chief economist roger bootle said he expected base rates to be cut by one full point tomorrow this is very much a safety first budget in order to get  rates down he said bootle said the money markets had almost entirely discounted such a one point cut with the key three month interbank rate down to pct from last night and it would be rather conservative for banks to go for a half point cut now midland bank treasury economist david simmonds said he too expected base rates would be a full point lower by friday but this would likely happen via two half point cuts this budget is designed to please both the markets and the electorate the implications for  rates are very favourable we could have a half point cut tomrorow and another such cut before the end of the week simmonds said pointing to buoyant u k retail data released yesterday he said lawson had done well to resist pressures for a sharp cut in income tax rates at the expense of a lower borrowing target there is no real need to boost private consumption he said national westminster bank chief economist david kern said the lower borrowing target set in the budget had increased the likelihood of an early one point base rate cut kern said the budget would have to be analysed carefully in particular to see how exactly lawson planned to achieve the sharper than expected borrowing target cut before a one point base rate cut could be implemented but providing the budget small print was convincing and i suspect it will be it is entirely possible that we see one point off base rates by the end of this week kern said bootle of lloyds said the expected base rate cut would pave the way for an early one point cut in mortgage lending rates this would help achieve lawson s lower than expected consumer price inflation target of four pct at end he said u k base rates were cut last week to pct from pct after sustained pressure from the foreign exchange money and government bonds gilts markets but building societies said they would not cut lending rates until base rates had fallen by one full point reuter 
