Bank halves base rate - Economy - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Bank halves base rate

Bank halves base rate

Category: Economy

Updated: 06/03/2009
First Published: 05/03/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Bank of England has announced that the official base rate of interest has been cut by a further 50 basis points.

It now stands at 0.5 per cent, a new all-time low for the figure.

The decision could lead to cheaper interest payments for those with secured loans, with the rate now having dropped by 4.5 percentage points since September of last year.

Explaining the move, the Bank's monetary policy committee noted that there remains a "substantial risk" that inflation would fall below its two per cent target in the medium term.

And with the rate cut unlikely to offset this on its own, the Bank also opted to finance £75 billion of asset purchases, in a bid to boost the supply of money to the market.

Should the tactic prove successful, it could lead to the greater availability of secured loans.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Inflation and you: what does the latest rise mean?

Today saw not only the outlining of the Government’s stance on leaving the EU, but also a rise in inflation that was larger than predicted. But what does this mean for the pound in your pocket?

Base rate remains unchanged in surprise decision

Earlier today, the Bank of England’s rate setting committee announced that it had voted decisively to keep base rate on hold at its record low of 0.5%. But what does it mean for you?

Budget 2016 – an overview

Well, George Osborne has just revealed the Budget for 2016 – his eighth so far as Chancellor – and as ever, there were some winners and losers from the whole thing. Below is a quick overview of the key points.