Smart blog from Ben Brogan who quotes Matthew Hancock MP (formerly George Osborne’s chief of staff) in showing how 2 & 3 year interest rates have halved since the coalition took over in the spring. Even
10 year rates are down from 3.96 to 2.91% As Hancock says:
when a country has a debt problem, getting to grips with the finances will keep interest area lower for longer. This is just what’s happened since Britain elected a government prepared to clear up the mess created by its predecessor. Interest rates on borrowing for 2 years or 3 years – the sort of rates fixed mortgages are based on – have halved. That’s a huge economic boost to families and businesses up and down the country.
Low interest rates of course are the greatest economic stimulus that businesses and consumers need.