Following the decrease in Base Rate last Thursday by 1%, from 3% to 2%, the Gibraltar Government has to-day announced a series of measures to protect savers in Gibraltar Government Debentures and Gibraltar Savings Bank Debentures from the effect of plunging interest rates.

Under the existing scheme, pensioners get 0.5% above Base Rate. Base Rate has fallen to 2%, meaning they would now receive 2.5%. Under the new scheme pensioners who invest in Gibraltar Government debentures will continue to receive at least the 3.5% they were getting before last Thursday’s interest rate cut. In addition, the rate of 3.5% becomes a floor, and will remain the minimum rate they will receive regardless of how much further interest rates fall during the next 3 years at least.

For pensioners who want a guaranteed higher interest rate, there will be the option to buy Gibraltar Government Fixed Term 3 year Debentures paying the fixed rate of 4.25%, for the next 3 years. In the case of this higher yielding debenture, although the interest will be paid monthly, the capital cannot be withdrawn for 3 years. ... more

Retailers must pass on interest rate cuts to consumers, says expert Roddy Kohn of KohnCougar.

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The Bank of England has cut interest rates by one percentage point, from 3% to 2% - the lowest level since 1951.

The cut was in line with most economists forecasts, it follows November's 1.5% cut.

Interest rates are now at a 57 year low.
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ECB Interest Rate Decision Analysis by Piet Lamens of KBC Bank.

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The Bank of England’s Monetary Policy Committee has today voted to cut the official Bank Rate paid on commercial bank reserves from 4.5% to 3%.

Although inflation is higher than the set target, most economists think that the loominrecession will curb any inflationary pressure in the United Kingdom. A lack of economic activity at home and abroad means commodity prices have fallen sharply.

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