The Bank of England’s monetary policy committee chose to reduce interest rates in order to assist households and businesses struggling financially and to keep repossessions at bay.
The Bank of England originally reduced the base rate to kick start the economy.
The intention behind that move was to lower the hoped that low interest rates would reduce the effect and duration of the recession .
Savers and borrowers have been penalised after the base rate cuts. Rate cuts ought to be news for borrowers yet unfortunately it is dependent on the kind of loan you have and your mortgage lender.
The Council of Mortgage Lenders (CML) stated that not all lenders are the same. "It is not realistic to expect them all to react in the same way to rate cuts."
The Bank of England is most likely to keep the base rate at its present historic low of 0.5% in the near future, perhaps until late 2014.
Low Interest Rates Keep Repossessions at Bay for Many Households
Thu, 01 Sep 2011
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