07-02-2008
Bank of England cuts rates to 5.25
The bank of England has just announced a very welcome interest rate cut of .25 per cent, bring the rate down to 5.25 for February.
Home and business owners will breathe a small sigh of relief that rising interest rates aren't compounding the misery of the credit crunch.
It is hoped that this move will restore some confidence to consumers and to the housing market.
British Retail Consortium director-general, Stephen Robertson said: "Having rejected a January rate cut, the Bank is right to act now to refuel the faltering economy and ensure it doesn't stall.
"Household bills are rising and there are job fears. Without a series of reviving rate cuts, consumer pessimism risks becoming self-fulfilling. Discounting moved up a gear over the last three months. Many retailers are suffering as costs rise much faster than selling prices, so job cuts could be forced upon retailers under pressure."