Mortgage News Article

11.11.08 by Rob Gill

Market's Tumble & Fall Means More Cuts

Money market rates have tumbled in response to the aggressive 1.5% cut in the base rate delivered by the MPC last week.

Having taken a month for October’s 0.5% base rate reduction to filter through to 3 month Libor, the benchmark rate has responded far more rapidly to the recent move, falling from 1.14% to 4.42% in the two sessions since the announcement. Swap rates are also falling with 2 year Swaps closing last week below 4% at 3.87%.

Further cuts could be on the cards as UK producer prices fell 1% in October, the biggest monthly fall on record. Annual inflation in input prices fell from 24% to 13.8% amongst signs that inflationary pressures are falling sharply, paving the way for the base rate to be cut towards 2% in coming months.

News Archive

Monty's Mortgage Blog

05.01.09

Welcome Back To The Madhouse

With the likelihood of another Interest Rate cut this week, the madhouse conditions here have started early this year.

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