rate cuts

Finances

Groups call on Banks to cut costs

Business groups have welcomed the recent 1.5% Bank of England (BoE) interest rate cut, but warned that banks must reduce their borrowing costs for small firms to benefit. The BoE’s decision to cut interest rates from 4.5 to 3% has provoked a positive reaction from business groups concerned about the effects of the economic crisis. The Federation of Small Businesses (FSB) national chairman John Wright said that if the banks pass on the rate cut in full, it would result in a £750 million saving for small firms on the cost of their overdrafts and other loans. “All this will come to nothing if the banks do not follow through and pass on the rate cuts to those small firms struggling with increased costs of credit,” Forum of Private Business chief executive Phil Orford sa... »

Will Rate Cuts Boost Business?

Small Business News – 3rd December 2007 With the Bank of England’s Monetary Policy Committee due to meet to announce the interest rate on Thursday 6th December, pressure is mounting on the Bank of England to cut interest rates ahead of an expected downturn in the economy next year. One economist, Patrick Minford, a former advisor to Maggie Thatcher & the Treasury and now professor at Cardiff Business School, has even suggested an interest rate slash of as much as 0.75%. Another expert, Tim Congdon of the London School of Economics, has called for a 0.5% cut in interest rates. Both economists believe that the MPC is taking too long to decide that what has already happened is not good for business. With rates at 5.75% since July, a number of economic bodies have railed the MP... »