Jump to content
Sign in to follow this  

UK interest rates to fall to lowest rate in over 300 years

Recommended Posts



This is why many here have PMs.


The Bank of England faces cutting borrowing costs to beneath two per cent - or even as low as one per cent - within months as it battles to protect Britain from the financial crisis and the worst recession in decades, economists said.


Such a drastic move would bring rates, currently 4.5 per cent, to their lowest level since the Bank was founded in 1694.


The rate cut would be good news for borrowers, who have faced sharp increases in their mortgage rates as embattled banks have raised the cost of borrowing in recent months.


However, it would be a blow for Britain's savers, who have seen their almost £1 trillion worth of deposits eroded by 16-year high inflation.


The article says nothing about what this would do to Sterling....odd really. :blink:

Share this post

Link to post
Share on other sites

So, how do the banks attract savings then? I suppose with Gordon's promise they don't need to anymore.

Share this post

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this