Interest Rates Cut to 1%

Online Stock Trading - Bank of England Cuts Rate to 1%

The Bank of England has cut the Bank base rate by 0.5% to 1.0% The lowest in the 500 year history of the Bank of England . In fact at 1.5% it was already the lowest but now it is even ower.

5 February 2009

"The Bank of England’s Monetary Policy Committee today voted to reduce the official Bank Rate paid on commercial bank reserves by 0.5 percentage points to 1.0%. The global economy is in the throes of a severe and synchronised downturn. Output in the advanced economies fell sharply in the fourth quarter of 2008, and growth in the emerging market economies appears to have slowed markedly. Business and household sentiment in many countries has deteriorated."

Halifax has said it will reduced its rates - let's hope Barclays do the same !

House prices were reported to have risen by Halifax in Jnuary by 1.9% - a sign the economy is bottoming out?

This rate cut may also help the stockmarket and make life easier for stock market trading as leaving money in a bank becomes even less attractive.

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