Moral Hazard?

Paul, Little Sutton, UK

The cut in base rate incorporating repaying both interest and capital on a £100,000 mortgage would save £15pm approx as per the above article!

Pete, L'derry, N Ireland

Thanks Bank of England for bowing to vested interest and helping to keep house prices artificially inflated so that young people in their 20s and 30s are kept off the housing ladder, no matter how much they save and how hard they work. And by the way, I was being sarcastic.

Paula Crowe, London,

This cut is all about political PR in an attempt to appease the majority of voters, but has nothing to do with economic common sense in attacking real inflation.

I have stated for sometime that indicators coming from those unbiased and realistic individuals on the ground has clearly shown a downturn in the housing market in the majority of regions.

The banks and their agents have again created an artificial increase in market prices by their continued relaxation of lending criteria and backed this up with sheer hype to panick individuals into borrowing ridiculous amounts as a consequence of this cosmetic market environment, which was made even easier during a time of low interset rates.

Clever stuff!!

Interest rates should stay stable at a responsible rate, for the benefit of the whole economy, and we should ignore the bleating of those who will feel the pain as a result of there over zealous greed, and irresponsibility.

No pain, no gain!

Paul Evans, Northwich, UK

Why hadn't the BoE raised interest rates much earlier on when house prices were soaring by up to a mind blowing 33% a year for several years? They have created the problem they now find themselves in just to give people an artificial feel good factor. Now they have to prop up house prices by coming to their aid and keep prices artificially high! I thought house prices were supposed to be only rising due to the shortage of supply? What nonsense. It was caused by greed.
House prices should be a special case and should come under their own specific regulations.

Peter Whittam, london, uk

It is not addressed enough by the press and economic commentators,but the massaged,politically influenced low official inflation figures provided over years,have directly resulted in dangerously low interest rates ,and dangerously high borrowings . Also,critically, a resultant loss of purchasing power by the man in the street,as pay increases and state pensions are largely based on official inflation numbers.
You can get away with this for only so long,and no further.Purchasing power is now seriously affected as pay/pension increases over years have lagged behind the real cost of living/inflation.
This lag is now gathering pace dramatically.

nic, royan, france

John, LONDON. WOW! That extra ten pounds will make all the difference. What, with real inflation running at least double the government's fiddled figure, petrol at over a pound per litre and most essential food stuffs up in price. By this time next year inflation will be running out of control and IRs will have to rise far above 5.75%. But, who cares? The MPC have given bottle brown his Christmas pressie, a few more people will be able to borrow against the pretend value of their houses to spend on goodies (mainly imports) and the UK economy will take an additional step towards debt induced meltdown. At least the insolvency practitioners will be happy.

Graham, Oxford, UK

It is the "golden rule" of marketing, make a massive price reduction, but if necessary many small increases to prices. The Bank should have dropped the base rate to 5%, even if it slowly increased the rate later.

If it takes up to 18 months for a change in interest rates to have full effect, why did the Bank make so many increases over the last year?

Raymond, Haslemere, England

The cut in base rate will save a person with a base rate tracker
and £100000 mortgage more like £25 a month not £15.

John, LONDON,

only one mention of the word inflation and no mention of the devaluing pound against the euro, australian dollar, yen, indian rupee! sure we are better off but worse off in context of the world market..

jj, Newmarkt, Switzerland

INFLATION, INFLATION, INFLATION

But at least the public image of BOE & the Government will look good...

Michael, Windsor,

INFLATION

Food and fuel prices already rising at 5-10% at least. Now this will get worse, hitting the pensioner and the poor in the pocket - only the rich will be shielded.

But at least the City is "relieved". Bless 'em, they've had a hell of a time.

Voland, Caen, France

The MPC's decision to cut interest rates and signal more easing of monetary policy next year looks increasingly politically motivated. The much vaunted claim from Gordon Bean that the Bank of England is independent in this regard does not stand up to close scrutiny; inflationary pressures in the economy are still very much in evidence.
Mervyn King has had to capitulate to pressure from Downing Street.

Rick, London, England

But will the lenders follow suit? Standard Life has put its rate up without any rise in bank interest rates so it will still be higher than the average even if it appears to cut its rate now.

CA, Macclesfield, UK

Quarter point cut is a band aid. A 2% cut right away is needed to prevent admission of this patient to ER.

Wil, Lincoln, UK

The MPC is not in place to bail out persons who over extended their mortgages and bought high. It is there to control inflation. You have just undone/wasted the effects of all the previous 0.25% rises made to dampen inflation way before their full affect has bitten. Now the stockmarket & house prices will rise again. As stated in the article now the banks will claw back their losses, due to their own mismanagement, back on fees. Please stop rewarding bad financial behaviour.

Scott, London,