The Bank of England has cut UK interest rates from 5.75% to 5.5% ahead of the costly Christmas period. Given the slowdown of recent months, triggered by the US sub-prime crisis, and demonstrated by the credit crisis and fall in house prices, the Bank has acted to ensure the slowdown doesn’t become too significant.
The cut in the base rate is expected to save borrowers £15-£20 a month on a £100,000 mortgage . However, although Nationwide and Halifax have cut their rates in line with the reduction, it is not yet clear whether banks will imitate the cut to its full extent.
The cut has been welcomed in most quarters, after signs of a reduction in high street spending had caused concerns that businesses could be in line for a weaker-than-usual Christmas period.
Bank of England Cuts Interest Rate
Bank of England Cuts Interest Rate
Mon, 10 Dec 2007
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