4
Dec
Bank slashes base rate to 57-year low
The Bank of England's monetary policy committee (MPC) has cut the
base rate by one per cent, bringing the figure to a 57-year low of
two per cent.
In its statement on the move, the MPC explained that the
"substantial" risk of the consumer prices index figure
undershooting its target of two per cent - which it warned of in
its inflation report last month - has now increased.
The cut is the third reduction in as many months, with the base
rate dropping by three fifths in that time.
Such a reduction may help lower the cost of mortgages.
Responding to the news, National Association of Estate Agents chief
executive Peter Bolton King said it was important for lenders to
pass on the cut, but emphasised that more action will be
required.
He added: "Government and lenders must do more to encourage
first-time buyers on to the property ladder in order to reverse the
current downturn in the market."
