Base rate cut to historic low of 1.5%

The Bank of England’s Monetary Policy Committee has announced a further cut to the base rate, taking it to 1.5% – the lowest rate since the Bank was founded in 1694.

Prior to the cut, the question had been not ‘will they cut it?’ but rather ‘by how much?’. Predictions varied from 0.25% to 1%, with most analysts seeing a cut of 0.5% or 0.75% as the most likely outcome.

What really matters to borrowers, of course, is how much of the base rate cut is passed on, in the form of cheaper loans and mortgages.

Base rate cut to historic low of 1.5%

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