Decision Day

At noon today the Monetary Policy Committee (MPC) will announce its decision regarding interest rates.

As the credit crunch continues to bite, and people fret about the state of the economy, there is pressure on the MPC to cut rates again following on from its 0.25% reduction in December.

However, whether they do or not may not make that much difference to those with debts and mortgages. As evidenced from previous reductions, banks are very reluctant to pass such cuts on to their borrowers but more than happy to penalise their savers.

As ever, the banks will do well out of whatever the MPC decides to do.