Since 1988, interest rates have been on a downward trend.
In October 1989, the rate stood at 15%. In 1996, mortgage rates were at a 30 year low.
The new Labour government has handed over the authority to the Bank of England to change the base rate. Between June and August 1997, the Bank of England increased the base rate four times (by 0.25% on each occasion). Between October 1998 and June 1999 we saw a steady decline of 2.75%. Interest rates again increased from September 1999 to February 2000. The next twelve months saw interest rates holding steady.
Pressures from the US economy, amongst other things, forced the Bank of England to review figures in early 2001, with interest rates starting a downward trends. Those with variable rate mortgages were happy but people relying on income from savings accounts had to start re-evaluating their options for the best return on their money.
It seems, for the time being at least, that there is a new trend in base rates.
Gone are the days of 2.0% cuts - the 0.25% and 0.5% changes are here to stay.
View Base Rate Data
