Hope for loans as base rate remains at 0.5%

4 June 2009

The Bank of England has decided to keep its base rate at its historic low of 0.5%, raising hopes that interest rates on personal loans and mortgages could fall - or at least that they won`t rise.

It is the third consecutive month that the base rate has remained at 0.5%, as the Bank of England continues to fight the recession.

A loans expert for Think Money said: "Despite the base rate remaining at an unprecedented low in recent months, this hasn`t had the impact on loans rates which many consumers have been looking for.

"Borrowers will hope that this month`s base rate announcement will encourage lenders to cut their rates - especially as the LIBOR [London Inter-Bank Offered Rate] has been falling closer to the base rate recently."

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Tags: base rate, loan, loans, LIBOR, bank of england, LIBOR rate, loans rate, loan interest rates, base rate cut, UK

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