The Bank of England has announced its decision to cut the base rate of interest in the UK by a quarter of one per cent.
It is thought that the reduction in the base rate could have a positive impact on homeowners and credit consumers around the country who have been feeling the effects of relatively high borrowing costs in recent months.
After five rises in the base rate since August of last year, many British homeowners have seen their repayment demands increase and found themselves struggling to become debt free.
“The Bank of England’s decision to cut rates by 0.25 per cent to 5.5 per cent is an early Christmas present to homeowners and those looking to take their first step onto the housing ladder,” said James Caldwell, the Fair Investment Company’s director.
Such is the current economic situation in the UK that Global Insight’s chief European economist Howard Archer described the bank’s decision on interest rates this week as “right on the margin”.