Bank cut must be passed on quickly, says expert

Date: 7th November 2008

The Bank of England's 1.5 per cent cut in its base rate needs to be passed onto consumers as quickly as possible.

That's the opinion of one industry expert, who believes that the reduction will only have significance if passed onto business start-ups and mortgage holders.

After the monetary policy committee's shock decision yesterday (November 6th), the Bank's lending rate now stands as its lowest level since 1955.

Sharon Bratley, financial planner at fairinvestment.co.uk, commented: "The cut of 1.5 per cent is a brave move from the Bank of England, and shows that it means business."

Ms Bratley added that she hoped banks passed on the full rate to lenders, rather than a "token amount".

"The banks have already been bailed out by the government and a rate cut should now be aimed at helping customers."

Business start-ups which wish to find out how the Bank's rate cut will affect their enterprise should consider consulting an accountant.