Home Based Business

The Bank of England is set to cut interest rates upto 4 times next year, with the first cut likely in January. This is in response to the sharp economic downturn we are currently experiencing.

The Bank is expected to cut rates as a show of support in the financial markets and the economy, regardless of the inflationary impact such actions will have.

So far, only the housing and financial markets have been seriously affected by the 'credit crunch'. However, in the New Year, it is expected that the negative economic data will become more widespread, with the lowest rate of the Uk's economic growth since 1992.

Sterling is expected to continue it's current fall against the dollar and figures last week revealed a record £20billion balance of payment deficit. All in all a gloomy forecast to start 2008.

What does this mean on a personal level?

Well, despite last month's interest rate cuts,banks are still reluctant to pass the saving onto customers and high risk credit accounts will not feel any benefit at all. Credit card companies are actually increasing their rates to bull doze their customers and gain as much profit as they can from vunerable people.

As I have said before, banks are not institutions you should trust with your money. Manage it yourself, keep an eye on your rates and move your accounts to take advantage of any commercial edges you can find.

Never forget it's your money.