Base rate cuts ‘have lowered cost of borrowing’

The recent base rate cuts announced by the Bank of England have helped to lower the cost of borrowing, yet their effects on the wider economy are yet to be seen, it has been claimed.

Lloyds TSB economist Trevor Williams explained that it can take up to 18 months for interest rate reductions to influence happenings in the economy.

However, the cuts have “certainly” made borrowing cheaper, he noted, adding that they may have helped people with their debt management