Something of a shock as the Bank of England has reduced interest rates by 1.5%
Now at 3% it is the lowest that rates have been since 1955 and the move must indicate how bad the Bank views the economic prospects.
The test now will be whether this rate is passed onto borrowers and as importantly savers as the banks have to attract funds as well as being lenders.
If the Bank wanted more evidence of the slump it had to look no further than the latest set of economic figures to hit the streets today.
New car sales down 23% year on year to October and construction orders down 19% on the year to September.
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