Bank Base Reduction to 1.5%

seikothrill

In view of the recent dramatic reduction of the Base Rate to 1.5% when will we see credit card interest rates reduced or will a reduction never take place?

YorkshireBoy

There's no correlation between base rates and credit card rates, the latter being risk based.

That said, expect the OFT, CCCS, et al to apply pressure for some reduction.

Be careful what you wish for though, because if ever base rates went to 7-8% again we'd then be paying circa 21% APR typical on all our standard rate borrowings...and 0% would be a thing of the past!