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tinecu

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

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http://www.telegraph.co.uk/finance/economi...since-1694.html

 

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:

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

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