Submitted on Thursday 24th April 2008
Base rate cut to 5%
The bank of England cut base rates to 5% today in a move that was widely expected to provide some support for a housing and business market that is facing significant challenges.
The decision was a three way split with one member seeking 4.75% and two looking to stick at 5.25%
Borrowers should not expect this to magically translate into rate improvements across the board as many lenders are not necessarily getting access to funds in a way that is directly linked to bank base. Obviously where this is a direct link the cuts will be very useful.
The Eurpean Central Bank held their base rate at 4% with inflation targets seemingly more important than growth
