What do the Bank of England’s Announcements mean for your Family?

The Bank of England today (Thursday 4 August 2016) announced that it would cut interest rates to 0.25%, the first time the rate has been cut since 2009 and the lowest rate since the Bank of England was formed in 1694.

In addition to the lower interest rate, other measures intended to inject cash into the economy and ward off recession were announced.

How will today’s announcement impact on families?

1. Good news for those on variable mortgages – If you are on a variable or tracker mortgage this announcement will mean that your repayments should fall due to the new rate.
2. The cost of essentials could rise – Today’s announcement saw the value of the pound plummet which could mean a rise in energy and fuel prices.
3. Bad news for savings – The return on savings has been low in recent years but is likely to drop further after today’s announcements.
4. Bad news for holiday goers – The drop in the pound could further impact on already low exchange rates, buying fewer euros and dollars.

The Bank of England’s Governor Mark Carney has commented saying that the Bank is aiming to “reduce uncertainty, and blunt the slowdown” caused by the Brexit vote. Each of today’s announcements aims to stabilise and grow the economy.

Make sure you are getting all the financial help available to you!

In the light of these changes, it is essential that you are claiming all of the financial help available to your family. Our Family Benefits Advice team can provide personalised calculations based on your circumstances. Call today for a free calculation on 028 9267 8200.