No change to interest rates

Document papers focused on interest rates official in boldThe Bank of England has decided to leave interest rates unchanged at 0.25%. The Monetary Policy Committee (MPC), which decides where to set interest rates, opted for a cut in August, taking rates to their lowest ever levels. It is therefore no surprise that rates have been left unchanged in September. The cut in August came in response to fears that the economy would slow considerably following the Brexit vote. Since then, new evidence has emerged that any slowdown will not be as marked ...

Interest rate cut: Winners & Losers

win concept, think differentFollowing the decision by the Bank of England to cut base rate to 0.25%, whilst at the same time, offering additional financial support to banks and other lenders, we look at who are the main winners and losers after the change. Winners Some existing mortgage borrowers: If you have a tracker rate mortgage, which pegs the interest rate you pay to the Bank of England base rate, you will see a reduction in your mortgage payments. Around 20% of all mortgages are arranged on a tracker basis. If yours is ...

No surprise as Bank of England cuts interest rates

The Bank of England, LondonAs expected, the Bank of England has cut the base rate of interest from 0.5% to 0.25%. As the chart below shows, this is the cut is the first change in seven years and takes interest rates to a new, all time, low. Whilst announcing the reduction, governor, Mark Carney, said: "We took these steps because the economic outlook has changed markedly, with the largest revision to our GDP forecast since the MPC was formed almost two decades ago." He added: "By acting early and comprehensively, the MPC can ...

Is deflation good or bad for your money?

Is deflation good or bad for your money?For the first time since Harold Macmillan was Prime Minister Inflation, as measured by the Consumer Prices Index (CPI), turned negative last month. But what does it mean for your savings, pensions and investments, we have the answers. But, first things first though, exactly what has happened? To put is simply, the CPI (usually) measures that rate at which prices are rising. It does this by comparing a ‘basket’ of goods and services from one month to the next and reporting the change. For the first ...