Interest rate cut gives consumers much needed space to lower debt

The Bank of England has finally decided to give the UK consumer some breathing space to pay off debts and has reduced interest rates by 0.25% to 4.5%. Alex Tarver, senior analyst at Fidelity International, says: "The MPC's decision to cut interest rates by 0.25% to 4.5% for the first time in two years today, had been expected by the market. Higher borrowing costs, oil prices above $60 a barrel, stagnant house prices and rising unemployment have been blamed for weaker consumer spending. "Added to this, GDP grew by 1.7% in the second quarter from a year earlier compared with 2.1% in ...