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Interest rate cut to lowest ever level of 1.5%
The Bank of England has announced a rate cut of 0.5% in the base rate of interest, taking the cost of borrowing to the lowest level ever seen in Britain.
The rate cut from 2% to 1.5% has been welcomed in principle by the Federation of Small Business (FSB), although there are concerns over whether the banks will pass this saving onto their customers.
"With rates now at their lowest ever level, small businesses are more concerned about access to money. The FSB would like a cast-iron guarantee that the banks will not only pass on the interest rate cuts, but pass on the money to the small businesses that need it," said FSB chairman John Wright.
"The small business sector is the sector to see the UK out of recession in 2009 and into economic recovery, but this can only work if credit lines start flowing to viable businesses again," added Wright.
This is the first time since the Bank of England was founded in 1694 that the rate has fallen below 2%.
Post Date: January 8th, 2009
The rate cut from 2% to 1.5% has been welcomed in principle by the Federation of Small Business (FSB), although there are concerns over whether the banks will pass this saving onto their customers.
"With rates now at their lowest ever level, small businesses are more concerned about access to money. The FSB would like a cast-iron guarantee that the banks will not only pass on the interest rate cuts, but pass on the money to the small businesses that need it," said FSB chairman John Wright.
"The small business sector is the sector to see the UK out of recession in 2009 and into economic recovery, but this can only work if credit lines start flowing to viable businesses again," added Wright.
This is the first time since the Bank of England was founded in 1694 that the rate has fallen below 2%.
Post Date: January 8th, 2009
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