Base rate cut 'could benefit credit card customers'
The Bank of England's monetary policy committee (MPC) has taken the decision to reduce the base rate of interest by 0.5 percentage points to 1.5 per cent.
Base rate cut 'could benefit credit card customers'”
Such news could be welcomed by credit card customers, should banks choose to pass on the reduction in interest to them.
In a statement, the central bank said the global economy seems to be experiencing an "unusually sharp and synchronised" downturn, adding that world trade growth in 2009 is likely to be the weakest for a "considerable" period of time.
Commenting on the decision, financial services provider F&C said it expects to see "further action" as steps are taken to try and stimulate credit markets.
"While the end of the road in interest rate cuts is rapidly approaching there is more that policymakers can - and will - do to ease the length and depth of recession," it added.
The MPC is due to take its next decision on whether to raise, lower or maintain the base rate of interest on February 5th.
Written by Sarah Wilkins
Written by Max Jennings ©
