Lib Dems: Base rate cut is right move

www.moneynews.co.uk > General finance > Lib Dems: Base rate cut is right move

Lib Dems: Base rate cut is right move

Fri 6th Feb 2009

A spokesperson for the Liberal Democrats has claimed that yesterday's decision to cut the base rate of interest was the right move to make, claiming that the Bank of England "had no alternative".

Vince Cable, the shadow chancellor for the party, stopped short of praising Gordon Brown's economic management, but said that the reduction of 0.5 per cent would help the economy.

He added: "There will be concern from savers but with inflation falling and likely to become negative in coming months, savers are now better off than they were when inflation was higher than interest rates."

Some financial institutions, like the Coventry, have not dropped the interest rates offered on their savings products.

The building society announced that the rates on a range of its bonds will remain fixed until next year.

Click here for more general finance news

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