Thursday, 4 August 2016
Governor of the Bank of England reduces interest rates to 0.25%
The Governor of the Bank of England has today cut interest rates from 0.5% to 0.25% because of the fear of a slowing economy. This is a precaution and he says he will make sure that the banks pass this on to their customers. A typical mortgage payer would be £22 a month better off, but savers will suffer.
This is the first change since 2009, the year after the recession hit.
Other measures will also be put into place like quantitative easing (printing more money). There is a nice little explanation here.
Only time will tell, but I think that while Article 50 remains uninvoked, the economy will remain static or slide.
The uncertainty is the killer, not what is actually happening or not happening.