Interest Rates
This marks the fifth interest rate cut since October, as the Bank seeks to encourage more lending.
However, there are concerns that savers will be hurt by lower interest rates.And business groups argue that this rate reduction will not be
enough to ease the economic crisis, and will not encourage banks to
lend.The decision comes after official data showed the UK had entered a
recession in December, after two successive quarters of economic
contraction.The Bank Rate has now been reduced from 5% in October last year.In a statement, the Bank of England said that the rate cuts,
along with government measures to boost the economy, "would provide a
considerable stimulus to activity as the year progressed."
Following the rate cut Paul Broadhead of the Building Societies
Association (BSA) told the BBC that savers were being "punished",
arguing that the move could hinder the funds available to societies to
lend as mortgages.
Interest Rates
Interest Rates
Interest Rates
Interest Rates
Interest Rates
Interest Rates
Interest Rates
Interest Rates
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