Rates cut to 5.25%

Market commentators had widely expected the move as the MPC seeks to boost consumer spending to stave off a recession. The US Federal Reserve has already cut interest rates by 1% since the beginning of the year, but the MPC remains concerned about inflation and was not expected to make a major cut. The news is likely to be welcomed by homeowners, millions of which will come off their low fixed-rate mortgage deals this year and will need to remortgage at a higher rate. Borrowers on tracker rate deals will also see lower monthly mortgage repayments. However, some analysts say lower rates ...