The Bank of England, BOE cut interest rates from 0.5% to 0.25% today in a bid to try and boost the UK’s economy. Governor of the Bank, Mark Carney also suggested that rates might be cut further in the future.
This is one of the measures the BOE has introduced since the announcement of an EU Brexit in order to stimulate the UK’s economy. This £100bn scheme will ensure that banks will have to pass on low interest rates to households and businesses.
According to the BBC News, today’s interest rate drop means that mortgage payers will typically have to pay £22 less per month on their mortgage payments, and savers will receive less than £25 in interest per year on a £10,000 savings pot.
Carney stated: "We took these steps because the economic outlook has changed markedly, with the largest revision to our GDP forecast since the MPC was formed almost two decades ago."
Mr Carney added: "By acting early and comprehensively, the MPC can reduce uncertainty, bolster confidence, blunt the slowdown, and support the necessary adjustments in the UK economy."
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Source: BBC News 2/8/2016