Well, many of us were banking on it … UK interest rates cut to 0.25pc

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The Bank of England cut UK interest rates for the first time since March 2009.
Mark Carney, the Bank governor, announced a reduction from 0.5% to 0.25% despite
the Monetary Policy Committee (MPC) voting to hold interest rates, despite economists predicting a cut.
There has been pressure on the Bank to act after recent economic information revealed the beginnings of a worrying downturn in growth.
With a sharp fall in the services sector, factory activity down and the construction industry also slowing, most economists argued that now is the time for action.
“Economic data since the referendum have weakened sharply. There is a real need for more stimulus now,” Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said.
In a way this can be seen as good news for the man and woman on the street – someone with a 25-year £250,000 repayment tracker mortgage paying 2 per cent interest could see their monthly £1,100 repayment fall by around £30.
There has been a lot of fear over banks starting to charge businesses for banking but t’s unlikely a cut in the base rate to 0.25 per cent will result in charges. But this is certainly something to be wary of further down the line if you are a small business owner with cash in the bank.
Keep your eyes out too for mayhem on the stock markets and certainly keep an eye on the price of your holiday … watch this space.

Consumer Watch Foundation

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One thought on “Well, many of us were banking on it … UK interest rates cut to 0.25pc

  1. Should make buying a house easier. Bigger demand prices of property may rise. Pity the poor innocents who thought saving was a good idea. Might as well put your money in the wardrobe.

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