Bank of England reduces base rate
The bank of England base rate has been reduced even further. It’s been over seven years since the UK reached it’s historical low of 0.50% Many though it would not go any lower, however, at the The Bank of England’s Monetary Policy Committee meeting on the 3 August 2016. It was deemed that if we are to meet the 2% inflation target and also in a way that promotes growth in the economy whilst sustaining employment the rate should be reduced. At the meeting the MPC voted for on a package of measures that would provide support for growth that would help achieve sustainable returns. The package consists of a 25 basis point cut in Bank Rate to 0.25%. A new historic low. The interesting thing now is will it go any lower.
Lenders have started to reduce their tracker rate mortgages noably Barclays being one of the first. Some other lender like Lloyds banking group have been slow to reat