Interest Rates Slashed - Again

On foot of today's news that the Bank of England (pictured) has cut interest rates to 1.5% - a further 0.5% decrease in the Base Rate - a local bank, the Northern, has reduced interest rates on all its Base Rate and Standard Variable Rate related products by the same amount.

Danny Stinton, Head of Personal Products and Planning for Northern Bank, said that borrowers would see their monthly loan repayments reduced and would be better off as a result.

"We are confident that Northern Bank's customers from the mortgage holder to the small business will see the direct benefits of the interest rate cut.

"The cut in interest rates comes at an important time in the calendar year for both businesses and consumers who will be using this period to plan expenditure for the year ahead.

"The hope is that the combined effects of the series of interest cuts over the last number of months will go some way to contributing to the significant task of building both consumer and business confidence in the weeks and months ahead," he said.

The Ulster Bank has also said it will pass on the cut to customers with borrowings linked to the base rate and mortgages linked to the standard variable rate.

However, the bank said it would defer a decision on the savings rates saying that for every mortgage customer it had seven saving customers.

The Bank of Ireland and First Trust Bank have yet to indicate their intentions.

Since October 2008 the Bank of England has reduced base rate by 3.5%.

On top of today's news that the Bank of England has cut interest rates, it is also rumoured the Chancellor is considering printing more money in an attempt to alleviate the pressures of the credit crunch.

The Bank's Monetary Policy announced the cut this morning, taking it to its lowest level in its 315-year history.

See: Interest Rates Reach All-Time Low Of 1.5%

(BMcC/JM)