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The Credit Cruncher was conceived to help you to keep up to date with credit crunch and recession developments, it provides some helpful credit crunch advice and it addresses personal debt. The Credit Cruncher also seeks to explain how the credit crunch started and shed some light on the worldwide recession. Recently, we have begun to look at how BREXIT will affect the UK economy. Please feel free to leave comments where relevant.

8 Jan 2009

Drop in interest rates today

New Rate: 1.5%
As expected the Bank of England announced another drop in base rates to day, taking the rate down to it's lowest ever level at 1.5%. This represents a drop of 3.5% since the beginning of October when base rate was at 5%.
Naturally this will be good news for some householders with tracker mortgages and not so good for those that were enjoying 5% return on their savings 12 months ago. When you take into consideration the global economic climate, a drop in mortgage rate will not compensate for the thousands who will find themselves out of work in the next few months. The hope that these measures will magically stimulate the economy could still be a forlorn one and there is still likely to be another cut in two months time which could well see the rate drop to or below 1%.

Further reading..
interest rate news
can interest go negative?
drop in base rate
UK heads for recession

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