Loan Rates Cut After Bank of England Decision
The decision by the Bank of England to cut interest rates to 5.25 percent has led mortgage lenders to cut loan rates.Lenders made the decision in an effort to limit the economic damage of the recent tightening of credit. They say they plan to pass the savings on to borrowers, which will reduce the monthly payment on a £100,000 by £16.
David Kern, economic advisor to the British Chambers of Commerce, lauded the decision to cut the rate, explaining that the worsening global economic situation made the move necessary to limit risk.
Mr. Kern believes that slowing growth is a greater threat than inflation and suggests that a larger cut was called for. A cut to 5 percent would have come as welcome news, he says.