Central banks cut interest rates in unprecedented move

Just a day ahead of the scheduled Monetary Policy Committee meeting, the Bank of England followed other global central banks by slashing the base interest rate by 0.5% in an unprecedented move. The interest rate in the UK has dropped from 5%, where is has stood since April, to 4.5%. Many lenders also reduced their borrowing interest rates right away upon hearing the news. Other global central banks have also shaved half a percentage point from their base rates, including Sweden, Switzerland, Canada, the United States, and Europe. Read more

Tags: policy, potential slide, financial markets, interest rates, slide

Mortgage squeeze not letting up

The mortgage squeeze in the UK doesn’t show any signs of easing according to officials in a recent report. Officials from the Council of Mortgage Lenders have recently said that the problems in the mortgage market do not seem to be letting up, and tighter credit and lending conditions are still very much in place. The problems in the mortgage sector began last summer with the arrival of the global credit crunch, and since this time the number and availability of mortgages has fallen rapidly. Read more

Tags: tighter credit, financial markets, order, Mortgages, mortgage industries, plan, mortgage market, Subprime mortgage crisis