BoE gives in to rate cut pressures

The Bank of England announced its first cut in the base rate for two years today, to 5.5%. But will the decision make any difference to the faltering housing market or tightening credit conditions?

The Bank of England gave in to pressure today and cut interest rates by a quarter point, from 5.75% to 5.5%. It is the first cut to the bank's base rate in two years.

The Bank's Monetary Policy Committee cited slowing growth and tightening credit market conditions in its statement, which was released at midday on Thursday.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.