The Bank of England faces cutting borrowing costs to beneath 2% - or even as low as 1% - within months as it battles to protect Britain from the financial crisis and the worst recession in decades, economists said.
The Telegraph says such a drastic move would bring rates, currently 4.5%, to their lowest level since the Bank was founded in 1694. The rate cut would be good news for borrowers, who have faced sharp increases in their mortgage rates as embattled banks have raised the cost of borrowing in recent months. However, it would be a blow for Britain's savers, who have seen their almost £1 trillion worth of deposits eroded by 16-year high inflation. ONE OF LONDON'S BEST KNOWN hedge funds, Gradient Capital Partners, is on the brink of collapse after dropping nearly 42pc in value last month, r...
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