8
Jan
Bank cuts base rate to record low
The Bank of England's monetary policy committee (MPC) has announced
it is cutting the base rate to a record low level of 1.5 per
cent.
At noon today the MPC revealed its decision to cut the base rate by
0.5 per cent, taking the cost of borrowing to a level never before
seen in the 315-year history of the Bank.
The committee stated that the signs are indicating a continued
economic contraction and that the outlook for consumer prices index
inflation was that it would be likely to undershoot the two per
cent target unless the cut was made.
Such a decision may help further lower the cost of mortgages.
Commenting on the news, chief executive of the National Association
of Estate Agents Peter Bolton King said that what is needed now is
for lenders to pass the rate cut on in full.
He added that the government should also suspend stamp duty,
commenting that if these actions were taken "we could open the door
to recovery".
