The Bank of England continued it’s crusade to guide the UK out of recession, announcing a further interest rate cut of one percent today.
The base rate now stands at just 2% the lowest figure on record since 1951, but the statement from BoE suggests that further cuts may be needed to stave off a deep recession.
Coupled with the governments determination to force banks into lending money, following the injection of tax payers money and unprecedented guarantees, the interest rate cut is designed to help business and public lend their way out of the doom and gloom.
The problem so far is that the banks refuse to play ball and despite the hot aired bully boy tactics of the government the situation looks unlikely to change. The winners at present are those who have pre existing loans and mortgages with financial institutions, but even then only if the rate cut is passed on to the end user.
As one commentator said “There is no point having cheap money if no one will lend it to you.”
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