Interest rates may fall again
Interest may fall further
Experts have predicted that interest rates could be cut further next week to 2.5%, a 70 year low. This forecast comes despite figures released yesterday indicating that falling house prices had slowed somewhat in November. Banks however, remain reluctant to lend, with unemployment rising and the number of borrowers in arrears increasing. Further falls in house prices are expected to continue for some time.
Savers protected
The Financial Services Authority (FSA) has altered their compensation rules, enabling those who have savings within merged building societies to be covered for up to £50,000 in each of the merged societies. The aim of the new rule is to provide some reassurance to those who may have considered moving their savings.
These new rules do only apply savers who had savings in the separate building societies before a merge took place.
 
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