Public 'unhappy' with base rate

Posted: 14 Jan 2009 11:37:54 GMT

The Bank of England's historic cut to the base rate last Thursday (January 8th) has been badly received by the wider public, according to one analyst at financial website moneysupermarket.com.

The perceived wisdom that a lower base rate will not do much to boost the housing market or the economy has led to the public becoming disgruntled, it has been claimed.

Louise Cuming, head of mortgages at moneysupermarket.com, said: "This could well be the time for the rate cuts to end.

"We need the financial stability that comes from a solid banking sector, but banks are being urged to offer high rates to savers and lower rates for borrowers - the sums just don't add up."

Homeowners will of course understand the frustration regarding the seemingly-powerless Bank of England, as it has been often-explained that the true antidote to falling house prices is to allow more buyers the chance to take out mortgages.

Given the tough lending conditions, however, homeowners hoping to make a timely and profitable sale could benefit from selling a home online, which can attract a greater number of buyers.



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