The Bank of England has cut the interest rate from 5.25 per cent to 5 per cent in the latest reaction to the global credit crisis. The cut is the third since early December and reflects the continued difficulty faced by banks . With many fearing a global economic slowdown, banks and businesses welcomed the cuts, but hoped there would be further cuts in the future.
Given the recent concerns about house prices many experts are commenting that the cut is unlikely to be passed onto borrowers. The volatility of the markets at present has meant that the rate at which banks lend to each other has remained high, thus causing a shortage in capital.
Bank of England Cuts Rates Again
Bank of England Cuts Rates Again
Mon, 14 Apr 2008
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