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Bank implements further rate cut

Bank implements further rate cut

Category: Loans

Updated: 09/01/2009
First Published: 08/01/2009

MONEYFACTS ARCHIVE
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 It is now over 6 months old so the content may be out of date.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 official base rate of interest has been lowered by 0.5 per cent, the Bank of England has announced.

It is now at 1.5 per cent, having been cut by the monetary policy committee (MPC) in the last four consecutive monthly meetings.

Falling inflation and a lack of credit in the market were noted as reasons for the latest measure, which could lead to cheaper secured loans if banks choose to pass it on to customers.

But Fairinvestment.co.uk noted that although mortgage rates may fall, only those with large deposits are likely to obtain a home loan.

And director at Fairinvestment.co.uk James Caldwell noted that savers are likely to be hurt, as rates will "edge even closer to zero".

Today's MPC decision brings the base rate to the lowest level in the Bank's 315-year history.

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