The cost of borrowing money has become cheaper following the Bank of England's interest rate decisions, it has been claimed. According to Trevor Williams, an economist at Lloyds TSB, borrowing money through products such as mortgages and unsecured loans has become cheaper, even if the full effects of the interest rate changes have not yet been fully absorbed by the economy. "It has certainly reduced the cost of borrowing," he said, adding that "there is more money in people's pockets compared with where people were before these rates started to be cut". However, Mr Williams stated that if the country's economy is still struggling then the Bank's decisions to lower the rate to the current level of one per cent is not having a "discernible effect". The Bank of England's rate setting monetary policy committee will meet for two days this week to discuss whether the rate should be further reduced this month.
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