Interest rates have been slashed to three per cent in a bold move by the Bank of England (BoE).
The decision by the Bank’s Monetary Policy Committee marks the biggest single rate cut since 1981 and is the first time since 1955 that rates have been as low as three per cent.
It is hoped that the large cut will ease the current economic squeeze and help provide some relief for those with offices in London and other parts of the UK.
Residential and commercial property groups have widely welcomed the decision with the MPC going further in slashing the base rate than many economists predicted.
Robert Sinclair, director of the Association of Mortgage Intermediaries, said: “We believe this demonstrates support for the underlying economy and is a phenomenal step.
“However, while the disconnect between inter-bank and base rate remains we require further intervention and mortgage market support by the authorities to deliver savings to consumers.”