8 Jan

Bank cuts base rate to record low

Bank cuts base rate to record low

The Bank of England's monetary policy committee (MPC) has announced it is cutting the base rate to a record low level of 1.5 per cent.

At noon today the MPC revealed its decision to cut the base rate by 0.5 per cent, taking the cost of borrowing to a level never before seen in the 315-year history of the Bank.

The committee stated that the signs are indicating a continued economic contraction and that the outlook for consumer prices index inflation was that it would be likely to undershoot the two per cent target unless the cut was made.

Such a decision may help further lower the cost of mortgages.

Commenting on the news, chief executive of the National Association of Estate Agents Peter Bolton King said that what is needed now is for lenders to pass the rate cut on in full.

He added that the government should also suspend stamp duty, commenting that if these actions were taken "we could open the door to recovery".

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.