Bank of England cuts interest rates further

www.moneynews.co.uk > Personal loans > Bank of England cuts interest rates further

Bank of England cuts interest rates further

Thu 4th Dec 2008

The Bank of England cut interest rates by a further one per cent today, in a move designed to make loans and mortgages cheaper and ease up the flow of credit to banks and consumers.

According to the bank, business indicators show that the economic downturn has gathered pace around the world necessitating an extra one per cent cut in the base rate on top of last month's 1.5 per cent reduction.

The base rate of interest now sits at two per cent which, if it is passed on to consumers by banks and mortgage lenders, could mean cheaper mortgages and loans for individuals and businesses in the UK.

Lloyds TSB announced immediately that it would pass on the base rate cut to small businesses from this Friday.

John Maltby, managing director of Lloyds TSB Commercial, said: "This is exactly the kind of action that small businesses need to help support them through these tough economic times."

Related News : Personal loans
	Nationwide personal loans 'great for making dream purchase'
	Sainsbury's Finance: Personal loans rates can vary
	Sainsbury's Finance lauds debt consolidation loans
	'Shop around for competitive loans' this Valentine's Day
	Loan rates 'highest for nine years'
	'Saving to spend' likely to replace credit
	Sainsbury's 7.9% loan still on offer
	Personal loan rates 'falling'
	Sainsbury's: New personal loan rate available
	Changes to credit searches 'need to happen'

Related News : Debt
	Lessons in financial responsibility 'are important for young people'
	Payday loans 'can lead to significant financial difficulties'
	Brits 'becoming more focused on financial wellbeing'
	Serious debt issues emerging, says expert
	More women 'are facing debt problems'
	Debts 'down slightly in February'
	Brits 'should focus on reducing borrowings'
	Paying down debt is 'better value than saving'
	January a 'gloomy month' for indebted Brits
	Most expensive debts 'must be paid first'

Related News : General finance
	Citizens Advice welfare applauds government
	Confused.com energy defends British Gas
	Bank of Ireland passes stress test
	Tesco Mobile deal 'courts consumers'
	Scottish Widows Investment Partnership notes favourable response
	Customers should fix now, says moneysupermarket.com energy
	Confused.com highlights importance of getting the best deal
	Prices on the rise, says moneysupermarket.com energy
	Bank of Scotland economic report 'suggests transitional phase'
	Clydesdale and Yorkshire Banks security advice issued

Related News : Mortgages
	Brits 'failing to grasp the importance of an interest in mortgages'
	BBA highlights mortgage lending growth
	Are interest-free mortgages a bad idea?
	Buy-to-let mortgages are 'more profitable'
	House price performance to impact lenders' criteria
	More Brits 'to choose long-term mortgages'
	Offset mortgages 'are the future'
	UK house prices 'set to fall'
	Hybrid mortgages 'are a good deal' for FTBs
	UK public expects house price increase