Interest Slashed to Lowest Rate for 300 Years!
Small Business News – 8th January 2009
The Bank of England today cut the base interest rate to the lowest level in its 315 year history.
The base rate was cut from 2% to 1.5% amidst concerns of continuing pressure on the economy with figures on high street spending and manufacturing still falling in the last quarter of 2008 and expected to slide further during the start of 2009.
Whilst the Bank of England’s cut has been welcomed, some groups still expect further cuts whilst others criticise the move as not going far enough.
It’s not all bad news though. For those small businesses fortunate enough to still have acces to lines of credit, the cost of borrowing is incredibly cheap right now and some SMEs are seizing the opportunity to prepare themselves for the expected upturn.
The next interest rate decision is due on 5th February.