The Bank of England (BoE) has decided to cut interest rates by a whopping 1.5%, down to 3%, the lowest rates have been since 1955.
Great news if you’re on a tracker mortgage, as your payments should be dropping. We’ll have to see if other areas of borrowing also fall. Not so good news if you’re looking to save though, as savings rates will probably come down too.
Although a cut was largely expected, I’m not sure too many people predicted a 1.5% fall – it’s the biggest single cut since 1981, when rates came down by 2%.
There’s plenty more information available on the rate cut at the BBC.
Let us know your thoughts on this news in the comments below – will you be better off each month?