MPC try and stimulate the economy

The Monetary Policy Committee (MPC) today has lowered the Bank Rate by 25bps to 5%.

The tensions in the UK money markets combined with evidence of a sharper deceleration in the housing market has spurred the MPC into action. Still, compared to the US who have had several interest rate cuts, 5% is not being overly accommodative. I think there will be another cut or two before the year is out to encourage and support the economy.

We are heading for a difficult year ahead in the economy and people are right to feel nervous. Anything that the Government can do to relieve us of any additional taxation would be good. Thank goodness the London Borough of Hounslow have tightened up for yet another year to give residents value for money and unlike many other Councils, have not increased the Council Tax.