Interest rate cut spurs mortgage lenders to follow suit
In the wake of the recent interest rate cut by the Bank of England, mortgage lenders have moved to slash home loan rates- in keeping with the trend.
In a further effort to avoid a sluggish economy, mortgage lenders have announced they will pass on the savings to consumers which could equate to a £100,000 mortgage being decreased by £16 a month.
Economic adviser to the British Chambers of Commerce, David Kern stated, “The MPC’s decision to cut interest rates to 5.25% was necessary for the economy. In the face of worsening global and domestic conditions, a refusal to act would have entailed unacceptable risks.”
Mr. Kern also asserted the move is “not adequate on its own” as threats to growth are “much more acute” now than the risks of inflation. “We would have welcomed a bold UK move to five per cent,” he concluded.
Where as a rally for a hedge against inflation is an understandable stance in these tough economic times, a balanced approach will most certainly cause fewer tidal waves, as consumers inch their way forward through these critical issues.