UK Interest Rates Now at 1%

The Bank of England decided to lop another 0.5% off the base interest rate taking it to a low of 1%. Sadly, I don't think this is going to have much of an effect in helping the economy to recover. Money isn't expensive, it's just hard to get hold of. Lowering the interest rates to silly levels isn't going to get the banks handing out the cash any quicker. They're just going drop the rates on savings and those loans/mortgages they're obliged to, and pocket the rest. They've got balance sheets to improve and they'll gladly do that at the expense of their customers.

Tagged with: Money, interest-rates and Bank of England