Bank lowers interest rates to 5%

[Sweetpea]

UK interest rates have been cut to 5% from 5.25% by the Bank of England in an attempt to spur the economy in the face of the global credit crunch.
It is the central bank's third cut in interest rates since early December.
Analysts said that problems in the money markets and recent dire news on house prices drove the decision.
But the credit crisis, which makes funding mortgages more expensive for banks, may mean the full reduction in rates is not passed on to borrowers.
The Bank said that disruption in financial markets could lead to a slowdown in the wider economy. "Credit conditions have tightened and the availability of credit appears to be worsening," the central bank said in a statement.

BBC NEWS | Business | Bank lowers interest rates to 5%


Well that is some relief after yesterday's recession news.

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ECB leaves rates unchanged at 4%

The European Central Bank (ECB) has kept interest rates unchanged at 4% as concerns about inflation outweigh evidence of slower economic growth.
Inflation is being stoked by record food and energy costs, and analysts have warned that it may prove difficult to slow price growth in coming months.
However, critics have called for a rate cut saying economic growth may stall.
Earlier, the Bank of England cut its main interest rate by a quarter of a percentage point to 5%. BBC NEWS | Business | ECB leaves rates unchanged at 4%


Ho hum!

So a quarter percent. Yipppeeee, Don't spend THAT all in one shop.

Unless of course you have a couple of MILLION. THEN it may make a difference of a few quid.

Other than that, Labour favouring the rich, but letting the poor think they are being given something, AGAIN.

Let me guess elections coming up?

[ambriel]

A quarter of a point is welcome but will go little to easing pressure on families so long as the price of petrol and diesel remains so high.

They refuse to cut taxes, that's the only thing that will stimulate growth after a long spree of credit based capital investment. We're not richer, we just borrowed more.