Secured loans holders may see "drastic action" - Loans - News - Moneyfacts


Secured loans holders may see "drastic action"

Secured loans holders may see "drastic action"

Category: Loans

Updated: 24/12/2008
First Published: 22/12/2008

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 It is now over 6 months old so the content may be out of date.

Secured loans customers could be set to see rates drop as the Bank of England is forced to take further action, it has been suggested.

At a meeting of the Bank's monetary policy committee (MPC) earlier this month, the official base rate of interest was lowered to two per cent.

But Jonathan Loynes, chief European economist at Capital Economics, has suggested that it could continue to drop.

His comments come following the US Federal Reserve's decision to set a target range for its equivalent rate of between zero and 0.25 per cent.

"Such drastic action is an indication that we may have to consider similar sorts of policies here because, after all, our economy is just as weak as the US economy," said Mr Loynes.

Announcing the decision last week, the Federal Reserve noted that inflationary pressures had diminished, something that has also been key to the MPC's actions.

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 Any products featured may be withdrawn by their provider or changed at any time.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

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…