BOE cuts rates by 1/4 of a percent
As accurately predicted by many analysts and financial experts over the past few weeks, the Bank of England has confirmed its decision to reduce the interest base rate by ¼ of a point to 5.25 per cent.
For variable rate loan borrowers and mortgage repayers, the news will come as something of a relief. Reports suggest that many Brits are questioning their ability to cope under the weight of present economic conditions, with large numbers of homeowners preparing to remortgage or even downsize their homes, in order to make their mortgages more manageable.
But is the reduction enough? Although on the face of it, a ¼ of a percentage drop may appear to be miniscule; it is believed that for many its effects are likely to make a sizeable difference. One expert commented that a base rate reduction of this calibre could quite easily mean the difference between people managing to make ends meet or quite simply, not being able to.
In addition, It is also predicted that the Bank of England will emulate recent decisions made by America’s FR, and will continue to reduce the base rate over coming months, in order to curtail the possibility of a recession.
