Another interest rate cut |
The Bank of England has today voted to cut the base rate by 1 percentage point to 2%. The cut brings the base rate to its lowest level since 1951.
The second hefty cut in a row (following the 1.5% cut in November) was widely expected, with evidence generally pointing to the economic downturn gathering pace.
Response to the move among lenders has been mixed, with the UK’s biggest lender, HBOS, only passing on a quarter of a percent to borrowers on its standard variable rate.
The cut follows news from Halifax that house prices fell 2.6% between October and November – their biggest monthly drop since the early 1990s.
