The Bank of England announced today (January 8th) that the base rate of interest will now stand at 1.5 per cent.
Following the decision of the Bank's monetary policy committee (MPC) to reduce interest rates by 0.5 of a percentage point, the base rate now stands at the lowest ever recorded in the financial organisation's history.
In a statement, the Bank asserted: "[The MPC] noted that the recent easing in monetary and fiscal policy, the substantial fall in sterling and the prospective decline in inflation would together provide a considerable stimulus to activity as the year progressed."
However, it added that there "remained a significant risk of undershooting" the two per cent inflation target set by the government and so made the decision to further reduce the base rate of interest.
Meanwhile, fairinvestment.co.uk has claimed that the reduction could do more harm than good as saving account and ISA rates have already fallen.
Unsecured loans:- JST Financial, Unsecured, Personal loan Specialists catering for good and adverse credit for tenants and homeowners