Pressure on mortgage holders could start to ease after the Bank of England announced that it has cut interest rates for the first time in more than four year.
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00:00Hello, I'm Michael Crosland, Business Reporter with the Yorkshire Post, here with the big
00:04news this afternoon that pressure on borrowers and mortgage lenders could start to ease after
00:10the Bank of England announced that it had cut interest rates for the first time in more
00:15than four years. The bank has reduced rates from 5.25% to 5%. The move is expected to
00:23mean that while rates remain elevated, mortgage costs could now start to come down while savings
00:29rates offered by banks could also now be reduced. Governor of the Bank of England Andrew Bailey
00:35said that while inflationary pressures had eased enough that the bank was able to cut
00:40interest rates, the bank was still going to be careful not to cut rates too quickly going
00:45forwards. Borrowing costs had previously been held at 5.25%, the highest level in 16 years
00:52since August last year. The cut comes after a split vote from the Monetary Policy Committee
00:59which controls the decision, which saw some members prefer to keep the level unchanged.
01:05That's all we have for the time being, I'm Michael Crosland, reporting for the Yorkshire Post.