Bank implements further rate cut - Loans - News - Moneyfacts

News

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

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 It is now over 6 months old so the content may be out of date.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.

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 Any products featured may be withdrawn by their provider or changed at any time.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

Blue Monday hits nation’s finances

Today has been dubbed Blue Monday – the most depressing day of the year – and considering how many people could be battling with their finances this month, it’s little wonder.

Calls to make the loans market clearer

At first glance the personal loans market may seem simple enough, but get into the nitty gritty and it can be anything but. As a result, some are calling for action to make the market clearer and fairer for all.

Get the cheapest ever personal loan!

Have you woken up with a financial hangover after the festivities? Perhaps you’ve got big plans for the year ahead, or maybe you need a new car? Well, whatever your reasons for needing a loan, you can now snap one up for the cheapest ever rate!
 
Close