The Bank of England has once again made history by dropping its Base rate to 1%.
Will it make any difference to an economy in free fall? Probably not. Again the decreases are unlikely to be passed on to borrowers or businesses
The government and the Bank of England now have stakes in most of the High Street Banks and Building Societies such as Swindon based Nationwide with a massive 60% in Royal Bank of Scotland (RBS).
Ideally this would mean forcing institutions to start lending however the government does not appear to want to use this option.
Posted by Sean Wilson, Independent Financial Adviser, Swindon, Wiltshire.