The recent cut in interest rates to 0.5% last week is causing controversy and mortgage experts slammed the decision as some tracker rates fall to 0%.
Yet for thousands of borrowers with tracker mortgages interest rates have fallen to 0%, with a fall of over 4.5% in the last 6 months
But the decision was seen as futile by some experts. CBI chief economist Ian McCafferty was reported in a Guardian article as commenting: “With interest rates already at historic lows, the conventional rate-cutting tool is becoming less and less effective as a means of stimulating the economy.”