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Rate cut by 0.25% - Lenders to follow suit
As many experts predicted, the Bank of England base rate was cut today by a further 0.25% to 5.25%. This was certainly a knock-on effect from the recent US Federal Reserve rate cut caused by the credit crunch.
Analysts feel there are more rate cuts to come in 2008, but warn high inflation could halt the same number of cuts predicted for the USA.
The countries largest lenders have indicated that they will be passing on today's reduction which is good news for borrowers with discount and variable rate mortgages as well as thoughs in the market for a new contract.
