The Bank of England has cut interest rates by one percentage point, from 3% to 2% – the lowest level in more than half a century. Source: The BBC.

And good news for Halifax customers.

Before the interest rates decision, the Halifax said its customers with existing tracker mortgages, that follow moves in the Bank of England’s Base Rate, would benefit in full from any cuts.

This was despite a clause in the Halifax’s paperwork which would have allowed it to put a limit on the cuts it passed on to mortgage customers. Source: The BBC.

So where next for interest rates? Any lower and they’ll be the lowest on record, and records started in 1694. Everything depends on Christmas, personally I’m cash short and credit poor, so I’m unable to spend as much as previous years – I suspect, I’m by far, not the only one. I think the Bank of England will be forced in to two more half-percent rate cuts.