Interest Rates Cut to 5.5%
Small Business News – 6th December 2007
The Bank of England’s Monetary Policy Committee has made the decision to cut the interest rate to 5.50%
With the worldwide credit squeeze affecting conusmers and business alike the Bank of England’s MPC has made the rate cut amidst concerns over a potential economic downturn. Recent figures have indicated a slowdown in the property market and even a fall of 1.1% in property prices reported last month.
In the last review of the interest rate, where rates were kept at 5.75%, the panel of the MPC voted 7-2 to hold the rates according to minutes released on 21 November. The signs of a potential economic slowdown were much less evident then.
This morning’s rate drop is the first since August 2005 and is expected to be a very small boost to consumer confidence in the run-up to Christmas.
The minutes of this meeting are expected to be released on 19 December.