Bank of England cuts base rate to 1%

As expected the Bank of England today further reduced rates by 0.5% to a new record low of 1%.

Citywire commentary says that ‘Data on the housing market was…supportive of further cuts, with Halifax’s house price survey – while showing a shock rise in house prices in January – revealing broad trends were negative, with house prices down over 17% year on year.

And while the cut is expected to bring further relief to the UK and stimulate borrowing and spending, in truth the effects of the monetary action have so far been muted.

Consumers have reined in spending amid concerns over job security, while banks have been accused of failing to pass on rate cuts thus far, negating their effectiveness further.’

Sources: BoE & Citywire (to read original article click here)

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