Page last updated at 18:58 GMT, Thursday, 6 November 2008

Interest rates: your video reaction

The Bank of England has made a shock one-and-a-half percentage point cut in UK interest rates to 3%, the lowest level since 1955.

Here BBC News website share their reactions in video. You can upload your videos by using the BBC upload page.

MIKE ECKHOFF, UNEMPLOYED, READING

Mike Eckhoff says the rate cut will hit savers.

The size of the rate cut - the most dramatic since 1981 - signals the Bank's concern the UK is heading for a long recession, the BBC's economics editor says.

Mike Eckhoff has been unable to find a job for a long time and has been living off savings.

He says a large cut in interest rates will make it harder for people like him to get by. At the same time, the rate cut will mean more people borrow even more money that they will not be able to pay back.


GARY SUTHERLAND, COMPUTER PROGRAMMER, SCOTLAND

Gary Sutherland hopes the move will help the housing market.

Mortgage lenders are now under pressure to pass the cut on to borrowers.

But due to the unexpected size of the cut, most banks have not yet decided how much of it to pass on.

Gary Sutherland is a home-owner struggling to find a buyer. He says any drop in interest rates is very welcome.

TOBIAS ALDRICH, SMALL BUSINESS OWNER, LONDON

Tobias Aldrich thinks the cut will help small businesses.

The BBC's economics editor Hugh Pym said the Bank of England was clearly concerned about the possibility of a prolonged recession in the UK.

Shadow chancellor George Osborne said: "This is a shot in the arm for the economy, but it shows how sick the patient is."

Tobias Aldrich says his business is relatively under-borrowed in relation to its income, but every 0.5% cut in interest rates will save him 5,000 a year.



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