UK interest rates lowest since 1951
Interest rates were cut by another percentage point on Thursday 4th December. This now brings the Bank of England base rate down to 2%. The last time the UK had a base rate of 2% was in 1951- 57 years ago.
The European Central bank also cut its main policy rate by 0.75% to 2.5%- the largest reduction ever.
The Financial Times reported that financial markets expect UK rates to fall to 1% in the months to come.
But how good will this be for mortgage borrowers?
As the FT reported, not all banks are going to pass on the full reduction. For example, Halifax cut its standard variable rate by only 0.25%, stating the need to balance “the interest of its customers with the commercial imperative of managing its business in a sustainable and prudent fashion.”
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