Welcome to TheCreditCruncher.com

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.

5 Feb 2009

UK bank rate drops to 1%

As expected, the Bank of England dropped the base rate to 1% today setting a new record low for the lending rate in the UK. Those of us with tracker mortgages will get short-term benefits, but concerns about the wider economy are still a major worry.
In other news, the jobless figures recently released were higher than expected helping to give the overall impression of a recession which is still not responding to government intervention.
There is still a feeling that the rate could reach zero fairly soon, what is clear is that reductions thus far have not had the desired effect. The hidden effect of these interest rate reductions is the effect that it will have on investments and pensions, which will bite us all in the long-run.

Related posts:
UK bank rate at 1.5%
Negative interest rates?
UK bank rate at 3%

No comments: