The Bank of England has announced that the rate of internet in the UK is to be slashed by 1% to an historic low of 2%, following last months decision to reduce interests by 1.5%; it is seen as another attempt to kick start the ailing British economy which has seen reports of job losses and reduced economic activity in the face of the global credit crunch.
One of the hardest hit sectors has been new car registrations which have seen a fall of 36.8% for November 08.
The Director of Retail Motoring Industry Federation (RMIF), Sue Robinson, had this to say about the interest rate cut:
‘The Bank of England’s decision to further reduce the interest rate is positive news for consumers and business, but it is vital that the saving is passed on to restore confidence in the marketplace,’
‘Consumers and business will feel more confident in the economy once they feel the effect of a lower cost of borrowing.’
