The Bank of England has today decided to cut interest rates, taking them down to just 2%.
Fears of a long and deep recession made the rate cut pretty much inevitable, as pressure on the BoE mounted to stimulate spending by reducing interest rates.
Those on mortgage deals which track the base rate will no doubt be over the moon (although they should check that there isn’t a minimum rate to which their mortgage rate can fall), savers on the other hand will find it more and more difficult to get a decent rate of return on their savings.
More to follow later.
They are not all guilty of this but for the banks NOT pass on the interest rate cuts, in whole, to their customers gives an insight to the greed, endemic to the banking culture that contributed to the mess the world economy finds itself in.