You are here: Home - Saving & Banking - News -

Interest rates fall

0
Written by:
06/12/2007

The Bank of England’s Monetary Policy Committee (MPC) has cut interest rates by 0.25%, bringing them down to 5.5% from 5.75%.

It is the first time the MPC has cut interest rates since August 2005 and the decision has been made following mounting pressure from across the country, as widespread concern has developed over the effect five interest rate rises since August 2006 have had on the economy.

Edward Menashy, chief economist with Charles Stanley Stockbrokers, said: “Although the MPC might have preferred to wait before reducing the Base Rate, the deterioration in the UK economy has become serious, with a sharp decline in mortgage lending, faltering house prices, public sector stimulus fading, a decline in commercial property more severe than 1980 and a faltering world economy.”

He added: “Lower interest rates give a boost to the bond and equity market but reduce the attraction to the currency. These developments were foreshadowing today’s decision.”

Related Posts

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Credit blacklist hits 4m

As many as 4m people fear they have damaged their credit rating beyond repair after falling into financial difficulty, according...

Close