Interest Cut to Historic Low
The Bank of England cut the base interest rate again, this time by 0.5 percentage points from 1.5% to 1.0%
The interest rate started at 5.5% in January last year, being cut to 5.25% in february then to 5% in April where the rate remained for half of the year.
As the credit crunch took hold and Britain found itself heading toward recession the rates were slashed dramatically in an attempt to assist the economy.
Now, at 1%, the UK interest rate is the lowest it has ever been and, meaning savers get poor returns but interest repayments on mortgages etc are considerably lower. Still, banks are loath to lend to Small Business despite the efforts of Government to provide enterprise finance schemes.
For your interest here’s a list of the months where the interest rate was dropped over the last year.
- Feb 2008: 5.25%
- Apr 2008: 5.0%
- Oct 2008: 4.5%
- Nov 2008: 3.0%
- Dec 2008: 2.0%
- Jan 2009: 1.5%
- Feb 2009: 1.0%