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Interest rate cut to 1.5%

The Bank of England has cut the interest rate to 1.5%, as widely expected.

The move is hoped to improve consumer confidence, however the RMIF argues that more direct approaches from government are needed to quickly kick-start consumer spending.

"Although interest rate reductions will help borrowers, it will conversely penalize savers, and those people reliant on interest for their disposable income," said Sue Robinson, director. 

"Unless counterbalanced with tax cuts and business support measures, further interest rate reductions could have a negligible effect on the economy."

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