As expected, the Bank of England dropped the base rate to 1% today setting a new record low for the lending rate in the UK. Those of us with tracker mortgages will get short-term benefits, but concerns about the wider economy are still a major worry.In other news, the jobless figures recently released were higher than expected helping to give the overall impression of a recession which is still not responding to government intervention.
There is still a feeling that the rate could reach zero fairly soon, what is clear is that reductions thus far have not had the desired effect. The hidden effect of these interest rate reductions is the effect that it will have on investments and pensions, which will bite us all in the long-run.
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