MPC February interest rate decision Newcastle Building Society comment

Wendy Lee, Commercial Director at Newcastle Building Society, says:

"This reduction is obviously good news for home owners and buyers, and especially for those 1.4m people who are coming off low rate fixed term mortgages this year, for whom every reduction makes a big difference.

"And whilst a cut is not normally good news for savers, the fact that there is intense competition amongst banks and building societies to attract savers will mean that there will still be a lot of good deals and products available to them.

"A single (quarter point) cut obviously won't solve the current pressing economic issues, and I would expect the Bank of England to follow the Federal Reserve's lead in making further cuts through the year, though they would be very unlikely to be as dramatic as those seen in the US last month.".

Back to top