The Bank of England's Monetary Policy Committee’s decision to cut its base rate by 0.25% has been welcomed by Derbyshire Building Society.
Tony Capon, Head of Intermediary Support and Development at The Derbyshire, said: "Today's cut by a quarter of 1% to 4.50% will not have surprised the financial markets.
"The consensus was that the MPC would cut rates in response to mounting evidence of a slowdown in industrial, retail and housing economic data and the provisional Q2 growth numbers of just 0.4%. There remains a strong possibility of a further 0.25% cut before the end of 2005.
"The rate cut will come as an added boost to homeowners with a Standard Variable Rate mortgage as the decrease of a quarter of a percentage point may result in borrowers with an average £100,000 loan saving an extra £20.00 per month in mortgage payments – money that parents can now use to treat their children during the school holidays."
