The Bank of England has cut interest rates by a further 1 per cent, leaving them at their lowest level since 1951. Having already cut interest rates by 1.5 per cent in November to 3 per cent, the new 2 per cent base rate has been welcomed by experts who hope that the reduction will help the country’s struggling economy .
Prime Minister Gordon Brown spoke of his hope that lenders would pass on the cut to businesses and homeowners. Mr Brown said, ‘If the banks pass the interest rate reduction on, and I hope and believe that they should do so, then it's of benefit to homeowners and businesses right across the country’.
So far, most lenders have said that their savings rates are under review, whilst HSBC and Lloyds TSB have said they would be cutting rates on standard variable rate (SVR) mortgages by the full one per cent. However, Britain’s largest mortgage lender, HBOS, said it would only be cutting SVR rates by 0.25 per cent. Nationwide, meanwhile, will reduce their rates by 0.69 per cent.
Having failed to pass on any of November’s cut to borrowers, Woolwich announced that it would be reducing rates on SVR mortgages by 1.15 per cent.
Bank of England Slashes Base Rate Again
Financial Services > e-banking > Banking news
Bank of England Slashes Base Rate Again
Fri, 05 Dec 2008
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