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Base rate cut to record low

Base rate cut to record low

The Bank of England has announced that the base interest rate has been cut to another historic low of 0.5% after last month’s cut to 1.0% By cutting the interest rate to its lowest ever level (again) the Bank of England’s Monetary Policy Committee is running out of tools to stimulate the country’s economy. Another concern is that such low interest rates will affect the banking sector’s profitability and potentially restrict further their ability and willingness to lend money. Pressure will be upon the banks to help Small Businesses with variable rate loans and overdrafts but passing on the benefits of the interest rate cut to their SME customers. However, the much talked about "quantitative easing" is being moved forward. Often referred to as "printin... »

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 l... »

BoE

Rates Cut to 5.25%

The Bank of England cuts interest rates to 5.25% »

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 ... »