January 8th, 2009 1 Comment » | POSTED BY ROB
Interest Rates Cut To 315-Year Low
As expected, the Bank of England has cut the UK interest rate by 0.5% to a 315-year low of 1.5%.
This is the first time that rates have gone below 2% since the BoE was founded back in 1694, and reflects the fears of slowing inflation and possibly even deflation.
The main problem now though is whether the interest rate cut will have any effect on the amount of lending that banks are doing, as the link between these decisions and how the banking industry reacts has been unclear over the last few months.
More to follow.
- MoneyExpert: Credit Card Balances Decline For Fifth Month (October 31, 2006)
- Guide To ISAs: Beware Cash ISA Offers (March 30, 2006)
- MoneyExpert: Monthly Mortgage Figures Continue To Break Records (August 19, 2006)
- How Are We Affected By Interest Rate Changes? (March 9, 2007)
- Student Loans Getting Cheaper (January 21, 2009)