Borrowers Breathe Sigh of Relief as Bank Rate Held

Published on 1 January 1970 by Raffick Marday

The Bank of England has today announced the Bank Rate will remain at 0.5 percent despite mounting pressures to raise it.

The Bank’s Monetary Policy Committee voted to maintain the official Bank Rate at 0.5 percent for the 25th month running, even though inflation is 2 percent higher than their target rate.

While the low base rate will be good news for borrowers who are just about meeting repayments, or making the most of low repayments by repaying more of their debt, it is not good news for savers.

Those who are struggling with debt however will also be concerned when the base rate eventually rises.

Money Problems Leading to Stress

The BBC reported economic problems are possibly causing a rise in depression in England, due to many households struggling to make ends meet.

Their data shows prescriptions for anti-depressant drugs rose by more than 40 percent over the past four years.

Even though they suggest financial problems often act as a trigger to depression, other factors may also be contributing to the rise in prescriptions for anti-depressants.

The government has recently increased access to talking therapies such as counselling, which should have seen a reduction in the demand for drugs however.

Figures for counselling demand rose to nearly 600,000 in the last year, the Department of Health showed.

In response to these figures, National debt charity Consumer Credit Counselling Service (CCCS) states they are not surprised by the increase in depression since the economic downturn.

“Being unable to repay what you owe is incredibly stressful,” said Gordon Bell, CCCS chief executive.

“This stress can spill over into all aspects of a person’s life, damaging their relationships, their ability to hold down a job often leading to depression.”

The fact that people have to put in more hours at work to afford their standard of living has caused 10 million Brits to sacrifice time with their loved ones, research by Scottish Widows showed, which could also be a contributing factor to depression.

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