The Bank of England has today cut the interest rate from 4.5% down to 3%, much bigger than expected. The rate is now at it’s lowest since 1955, and the 1.5% cut is the most dramatic since a 2% reduction in 1981.
The Priminister has asked all banks and building societies to pass on the interest rate cuts to their mortgage holders. Lloyds TSB has promised to pass on the rate cut in full to its variable rate mortgage customers.