Hello? - it’s been falling for the last 18 months since we had 5 consecutive rate rises and a 20% increase in fuel bills.

The main points from Mervyn King, the Bank of England Governor in his quarterly report are what we are all so painfully aware of;

• House prices unlikely to rise over the next three years and may even fall.
• He would not confirm their would be no recession.
• Further reductions in interest rates were likely.
• Banks will not be passing on interest rate cuts as they had historically, as the Governor stated how badly managed the Banks accounts had been and they will now need fatter margins for the tough period ahead.
• And the bleeding obvious - a result of all of the above - standards of living will fall!

What about poor old Mr & Mrs Joe Public with their two kids? Allowing Banks to fatten their margins is all well and good, but what are the powers that be going to do to stop the real drain on a families personal finances, which is a real 6/7% cost of living increase in the last twelve months alone. The only way they can actually do this is if these interest rate drops that the Bank of England have planned ARE passed on to cash strapped families. Come on Government its absolutely needed for families in the UK.

I thought Gordon Brown had some clout, but obviously not, see my Blog entry in Jan: Gordon in an unprecedented move gets tough with greedy lenders.

The Bank of England seem to be backing the Banks. Where is the backing for the UK mortgage paying population?

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