In the wake of the decision to cut the base interest rate in the UK by a steep 50 basis points, the governor of the Bank of England, https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpg Carney, is now indicating that it may undergo further reductions.
The Bank of England has reduced the base interest rate from 0.75% to 0.25%, in the wake of the uncertainty that the spread of the coronavirus is creating, as it tries to increase the level of demand within the economy. The current base interest rate represents the lowest level ever set by the Bank of England, although it is the second time in history it has been at that level.
What will concern many though is that Carney is already suggesting that it could go even lower. During a press conference, he stated that there was a possibility that interest rates could be cut to almost zero, but he went on to add that there was no reason to panic about recession. Carney said that the Bank of England would do everything necessary to safeguard the economy.
He concluded by saying that lowering the base rate of interest was one of several measures being taken to cope with the effects of the coronavirus. Other steps include setting up a new scheme that motivates building societies and banks to lend – whether it is mortgage loans or enterprise ones – which will bring new credit of over £100 billion.
The expertise with which CeMAP training provides mortgage advisors will be crucial in helping borrowers during this crisis.