The Bank of England is considering cutting bank base rate once again in order to boost the economy.
City analysts have suggested the Bank of England may cut bank base rate even further to 0.25%.
The base rate decision will be published this Thursday, with suggestions that a cut to a new record low would help to stimulate the economy.
This follows the disastrous figures from the Office for National Statistics earlier this month which found that GDP had fallen by a whopping 0.7% between April and June, far higher than expected.
Base rate has sat mired at 0.5% for more than three years now, which has been great news for borrowers, particularly those on cheap trackers or standard variable rates. A further cut would be even better news for them, and would free up extra cash in their monthly budgets. The hope is that they would then spend that cash, giving the economy a boost.
However, such a cut would be a further kick in the teeth for savers who are already putting up with rubbish rates on their money. What’s more, there’s a risk that this extra cash would instead be sent on reducing debts rather than new spending.
What do you think? Should base rate be cut yet further? Or is there another answer to the nation’s economic malaise? Vote in our poll below and have your say in the Comments section.
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