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Bachelors `forced to spend more` Finances `causing women sleepless nights` Christmas spending slowdown expected Christmas spending ‘will fall’ Credit cards: UK interest rates almost double US rates Recession ‘to last well into 2009’ Unemployment `on the up` AA urges public wholesale petrol prices Consumers ‘could expect to see full benefits’ of rate cuts Banks ‘increasing overdraft charges’ People in debt `should be helped to help themselves` Consumers `likely to be under pressure at Christmas` Britain "addicted to debt", politician states Consumers ‘repaying debt from last Christmas’ Brown: Banks must make loans available Workers `missing out on pension money` Christmas savings schemes `good way to stay debt free` `Many parents worry about children getting into debt` Falling inflation means interest rates could fall Petrol prices ‘could fall below 90p’

Financial gloom may encourage rate cut

03/10/2008

A recent survey of manufacturers may make a cut in the Bank of England’s base rate more likely, the Financial Times reports.

Measuring output reported by purchasing managers, the Chartered Institute of Purchasing and Supply/Markit report on manufacturing returned a reading of 41 for September, its lowest reading since the survey began in January 1992.

Down from 45.3 in August, this ‘represents a marked shift to pessimism and falling sales’, according to the Financial Times.

Increasing economic gloom may encourage the Bank of England to lower its base rate in a bid to stimulate the economy – something which may interest borrowers thinking of consolidating their debts.

Since the interest rates on various kinds of debt (from mortgages to debt consolidation loans) can be linked to the base rate, any rate cut by the Bank of England could help people in debt, reducing both the amount they pay on some of their existing debts and the cost of a potential debt consolidation loan.

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Bachelors `forced to spend more` 17/11/2008 - People who live by themselves find it more difficult to Bankruptcy `increases by 7%` 17/11/2008 - The number of consumers in England and Wales facing bankruptcy Finances `causing women sleepless nights` 14/11/2008 - Financial concerns, potentially including debt problems, are causing women sleepless Christmas spending slowdown expected 13/11/2008 - Christmas spending is expected to stagnate this year, as consumers