Bank Of England Reduces Base Rate to 3%

Well, a huge statement of intent to get the economy moving by the Bank Of England, reducing interest rates by 1.5% in one hit. This is huge, huge news as for the past year the Bank Of England has simply wibble wobbled about nibbling off a quarter of a percent here and there. Today's rate cut just shows the severity of the problem in the economy at the moment. The rate cut should bring some good news, freeing up some extra cash for hard up families on tracker mortgages however brings more bad news for savers who will have seen their rates almost halved in the past year.

Hopefully, together with lower fuel prices and lowering taxes, confidence will return to consumers.

Interestingly, many people have opted to staying in over the weekend in order to save the pennies which has seen Dominoes Pizza report soaring profits. However, a medium Tandoori Hot and a small Meateor pizza adds up to £19, if you collect it yourself. A meal for 2 at the Hollow Tree, a gorgeous pub just off the Stretton roundabout in Cheshire which included a starter, 2 coffee's and 4 pints of beer was £21.

Marks and Spencer has also been suffering badly with profits down 35%, however I've not actually been into a Marks & Spencers store and seen a decent offer yet. If businesses are to survive they need to alter their pricing and advertise more to let people know whats out there. Boots The Chemist for example has fantastic offers on and I would highly recommend checking out their Christmas catalogue for gifts for all the family. And guess what, their balance sheet is looking pretty healthy!

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