Pressure on borrowers expected to ease after interest rates cut for first time since pandemic
Pressure on mortgage holders could start to ease after the Bank of England announced that it has cut interest rates for the first time in more than four year.
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00:00Hello, I'm Michael Crosland, Business Reporter with the Yorkshire Post, here with the big
00:04news this afternoon that pressure on borrowers and mortgage lenders could start to ease after
00:10the Bank of England announced that it had cut interest rates for the first time in more
00:15than four years. The bank has reduced rates from 5.25% to 5%. The move is expected to
00:23mean that while rates remain elevated, mortgage costs could now start to come down while savings
00:29rates offered by banks could also now be reduced. Governor of the Bank of England Andrew Bailey
00:35said that while inflationary pressures had eased enough that the bank was able to cut
00:40interest rates, the bank was still going to be careful not to cut rates too quickly going
00:45forwards. Borrowing costs had previously been held at 5.25%, the highest level in 16 years
00:52since August last year. The cut comes after a split vote from the Monetary Policy Committee
00:59which controls the decision, which saw some members prefer to keep the level unchanged.
01:05That's all we have for the time being, I'm Michael Crosland, reporting for the Yorkshire Post.