News - Interest Rate Cut November 2007
Rate Cut
6th December 2007
Good news for borrowers as the Bank of England's Monetary Policy Commitee
cut the UK Base rate by a quarter percent down to 5.5% - the first drop
since August 2005. The reduction was seen by the City as an essential
response to prevent the slow down in the UK economy turning into an
out-and-out slump. Recent reports by two major UK building societies
indicated a further slide in house prices and retailers were reporting
a quieter than normal high street.
November 30th 2007
The UK's Council for Mortgage Lenders wants the Bank of England to
cut the base rate soon as funding sources for new mortgages start to
dry up. Mortgages are partiallly funded by inter-bank borrowing and
in the ongoing credit squeeze, banks are finding borrowing expensive
- with the result that they have to raise costs to customers or reduce
the amount of funding available in order to balance the books.
November 13th 2007
Rate drop predicted as Bank of England announces revised economic forecasts.
The Bank forecast that economic growth would be lower than previously
anticipated and inflation could spiral. However the Bank expected that
inflation rates could be kept below target even with one or more quarter
percent cuts in the base rate during the course of 2008.
November 8th 2007
As predicted in the markets, the UK Base rate held at 5.75% again -
the fourth month that the rate has remained at the current level.
The last change was an increase of 0.25 per cent to 5.75% in July 2007
and prior to that, an increase of 0.25 per cent to 5.5% in May 2007.
It's predicted that a slowing down of the economy in general and the
retail and housing sectors in particular may see the Bank dropping the
rate a quarter point in December or January 2008.
October 2007 Base Rates
September 2007 Base Rates
August 2007 Base Rates
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