The UK financial services industry was handed a small reprieve today after the Bank of England cut its base rate by 0.25% to 5.5%, the first change in the rate since July.
The cut has been welcomed by those in the financial services industry, though some have criticised the Monetary Policy Committee (MPC) for failing to pre-empt an economic downturn that now seems inevitable. The Council of Mortgage Lenders (CML) says it was pleased with the MPC’s decision but continues to be concerned about liquidity in wholesale mortgage finance markets. The CML’s director general, Michael Coogan, says: “A reduction in interest rates is exactly what the market needs and will benefit consumers. This will reduce the risk of payment shock for the 1.4 million borrowers coming...
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