List of before/after rate cuts following BoE cut?

Flobberchops

Yes, both are correct, but it's a matter of perspective.

Was the recent BoE rate cut "just a quarter percent reduction" or was it "slashed by a half"?

Santander decided to halve its 123 interest, so clearly some people (and banks) are choosing to look at things in relative terms!

hoc

Flobberchops wrote: »

Yes, both are correct, but it's a matter of perspective.

Was the recent BoE rate cut "just a quarter percent reduction" or was it "slashed by a half"?

Santander decided to halve its 123 interest, so clearly some people (and banks) are choosing to look at things in relative terms!

I have to agree with pavane, "nobody" in the finance world talks of interest rates in relative terms. As mentioned it is in terms of basis points which are basically the absolute percentages to precisely avoid confusion over the change being relative.

The "cutting by half" make better news headlines. The Santander case you mention is a clear example, if you are suggesting there is any sort of equivalence between the BoE's "halving" of their rate from 0.50% to 0.25% and Santander's from 3.0% to 1.5% then the argument is already lost. It doesn't work this way. There may be correlation but retail rates are not multiples of the base rate, they are adders on top. This is also how most formula pricing works.

I was interested in the list, not a witch-hunt personally, but people could draw their own conclusions looking at such a list.

pavane

I asked Moneyfacts for the data, I will let you know if they respond.