Bank base rate slashed to 3%

Posted by AccountingWEB PM | on Thu, 06/11/2008 - 12:16 3275 1 comment

The Bank of England has slashed interest rates in by 1.5% to 3%, its lowest since 1955. This follows another 1.5% rate cut last month.

Ths is the first time the Bank has cut rates by more than half a percentage point since gaining its independence in 1997.

BBC economics editor Hugh Pym said:

"The Bank of England is using terms like 'very marked deterioration in the outlook' and 'severe contraction'.

"It is clearly very concerned about the possibility of a prolonged recession in the UK.

Continued...

But unwelcomed by savers & the retired.

AnonymousUser | Wed, 12/11/2008 - 11:37 | Permalink

The government guarantees our bank accounts but robs us of our interest ? Also remember folks that as a result the pound will go weaker so your imported luxury goods are going to cost more.

As the government has to borrow billions to fund bailing out the banks the interest rate cut will make it difficult for the government to issue new Gilts with attractive rates of return !

Ask youself is Brown trying to say GB or his job. Labour announcers tax cuts to help the economy. No. Just only their way of buying votes at the next general election!