Interest rates hit another all-time low

Link to article at Channel 4

Last Modified: 05 Feb 2009
By: Channel 4 News, Faisal Islam

Interest rates fall to 1 per cent as the Bank of England announces a cut for the fifth consecutive month.

The decision by the Monetary Policy Committee (MPC) reduces interest rates to another historic low as the bank grapples with the deteriorating UK economy.


The announcement is the first decision from the Bank of England's policy makers since the UK's slide into recession was officially confirmed and an International Monetary Fund (IMF) forecast that Britain would suffer worse than all other advanced nations in the worst global slump since the Second World War.

The dramatic reductions from 5 per cent last October have been good news for most borrowers with tracker mortgages but dealt a savage blow to savers.