The Bank of England slashed its key rate by 1.5% to 3%. The ECB cut rates by half a point to 3.25%. Those move show the current difficulties of the moment and as The bank of England cited “marked deterioration in the outlook for economic activity at home”. They intend to encourage borrowers with rates which haven’t been that low since half a century (1955). Economists were predicting a decrease of 1% and where surprised by the decision and acknowledge the intention of the BOE to fight the current crisis.

The question now is how quick the high street bank will reduce their borrowing rates in order to attract again borrowers. It is like the petrol companies who tend to take time to pass the fall in oil prices at the pump.

It is the first time in many years that the rate of the BOE is better than the BCE and we do think that it is wise to do a quote in euro and sterling when buying a property in the euro zone if your main income is in the UK