UK Interest rated - the lowest ever

**temi** · 01-08-2009 03:54 PM

The 315 years old bank of England cut the interest rates to 1.5% today. This represent the lowest interest rate ever in the bank's 315 year history. The bank started cutting interest rate from October 2008, prior to the cuts, interest rates was about 5%.

Not everyone was happy with the current level interest rates, Manufacturers' association things the cut of half a percent announced today was "too timid", and call on Bank of England to cut rates.

**odls** · 01-09-2009 09:54 AM

I wonder if it will ever go down to 0%? These cuts must be good for those on mortgages, particularly trackers.

It`s just to be hoped the banks pass on the lower rates to help stimulate the economy.

**temi** · 01-09-2009 10:34 AM

Originally Posted by odls

I wonder if it will ever go down to 0%? These cuts must be good for those on mortgages, particularly trackers.

It`s just to be hoped the banks pass on the lower rates to help stimulate the economy.

The argument is that the bank of England needs to keep some trick up its sleeve in case more stimuli is required. The thinking is if they cut it to 0%, the only trick left is to print more money and if we do that, we are heading for Zimbabwe style catastrophe.