Interest Rate Cut
The Bank of England cut interest rates to 0.1% in an emergency move to support the UK economy in the face of the COVID-19 pandemic. Interest rates are now at the lowest level ever in the Bank's 325-year history.
- Homeowners with a base-rate linked mortgage should expect to pay less interest each month.
- Savers will continue to incur low interest rates on savings products, such as ISAs and term deposits.
The move has also seen the Pound Sterling fall to its lowest rate against the Dollar since 1985. In the short term, imported goods and foreign currencies will be more expensive for UK citizens; in the long term, consumer prices may incur inflation.
The Jamat is reminded to be prudent at this time, cut out unnecessary spending and to build up their savings.
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