Interest Rates

For years interest rates moved up and down like a yo-yo. Throughout the years I was running my legal practice interest rates were a constant source of speculation. In recent times the base rate has been stuck at 0.5% incredibly it did not move at all during the last Parliament. However this week it has been halved by the Bank of England to just 0.25%. The Bank have justified their move on the grounds that there is evidence that the economy is slowing down. Inflation remains low and below their 2% target. Mortgages should be a little lower and no doubt mortgage holders will be surprised at the move since before the referendum there were dire warnings that if we voted to Leave the EU the cost of mortgages would go up. I guess in time this will prove correct but I doubt it will have much to do with the vote in the referendum.

Published by David Nuttall

Business and Political Consultant

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