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How does cutting the Base Rate from the Bank of England encourage spending?

April 26, 2017Bank base cutting ENCOURAGE England rate Spending

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How does cutting the Base Rate from the Bank of England encourage spending?

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In theory it will because most people have mortgages and (mostly) the interest rate on these comes down when the Bank of England reduces its base rate, therefore most people will have extra money because of this. Whether they spend that extra money is debatable though.