Secured loans may fall as Bank cuts rate - Loans - News |

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

Secured loans may fall as Bank cuts rate

Secured loans may fall as Bank cuts rate

Category: Loans

Updated: 04/12/2008
First Published: 04/12/2008

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 It is now over 6 months old so the content may be out of date.

The Bank of England has announced a reduction of one per cent to its official base rate of interest.

It brings the rate down to two per cent, following last month's cut from 4.5 per cent.

Explaining the move, the Bank's monetary policy committee (MPC) said that there is a "substantial risk" that inflation will fall below the target of two per cent in the medium-term, after the consumer prices index growth rate was found to have slowed.

It added that a return to normal lending would be "unlikely" without the introduction of a third consecutive cut.

"Despite the actions taken to raise bank capital, ease funding and improve liquidity, conditions in money and credit markets remain extremely difficult," the MPC stated.

The reduction could lead to cheaper rates for secured and unsecured loans customers.

Last month's cut of 1.5 per cent was the biggest the Bank has made since being given rate-setting independence in 1997.

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 Any products featured may be withdrawn by their provider or changed at any time.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