As anticipated the Bank of England cut interest rates to 3%. The lowest in some 50 years.
Will mortgage rates come down?
That is the important question, banks and building societies have not been passing on reductions to consumers because they have been worried about their profit margins.
There are some lenders who would be able to lower rates substantially but are not doing so becasue of lack of competition in the market place.
Will savers be hit?
Yes, rates for savers will reduced much quicker than for lenders.