Interest Rate Cut
Bank of England drops base rate by 0.25%
4th August 2005
In a widely predicted move, the Bank of England has cut the base rate by a quarter per cent to 4.5%.
The cut is the first change in interest rates for 12 months, since they hit what now appears to be a peak of 4.75% in August 2004 in a sequence of 5 increases in 9 months.
The cut is in response to a flagging economy, with growth at its lowest level for over a decade, and will be good news for variable rate mortgagepayers who will see a reduction in their monthly repayments.
The news isn't so good for savers however, with many banks being quick to reduce the interest paid on savings.
Read More: BBC : Bank cuts interest rate to 4.5%
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More on Interest Rates : Mortgage Approvals Up Again (News, 28/09/2005), Weak Growth Prompts Rate Cut Prediction (News, 28/09/2005), Lenders Slow to Pass On Rate Cut (News, 11/08/2005), No Change In Interest Rates (News, 09/05/2005), Rates Stay at 4.75% (News, 07/04/2005), See all 11 Interest Rates stories >>> |
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