Debts & Loans

A leading economist has said that the Bank of England may need to drop its base rate to 0% in order to avoid an economic depression.

Charles Goodhart, a founding member of the Bank of England’s Monetary Policy Committee, told Channel 4’s Dispatches programme: “Interest rates will go down from now, but by how far and how fast nobody knows.

“They could go to zero. They went to zero in Japan in the 1990s when the Japanese had a recession or depression, which went on for a long time and was quite severe.”

A spokesperson for Think Money said: “Such a base rate cut would be a massive boost to those facing financial problems and even debt.

“We have seen a lot of repossessions over the past year, as rising costs have forced increasing numbers of households into debt. There will be many more who have kept their homes, but are nonetheless under a lot of pressure and may fall into debt as a result. Hopefully, further significant base rate cuts will help those people.

“As always, we advise anyone struggling with debt to seek expert debt advice. In general, the sooner they do, the easier they’ll find it to clear their debts.”Think Money offer a range of debt solutions, including debt management, debt consolidation loans and IVAs (Individual Voluntary Arrangements). If you are worried about your debts, contact one of our expert debt advisers today.

Think Money offer a range of debt solutions, including debt management, debt consolidation loans and IVAs (Individual Voluntary Arrangements). If you are worried about your debts, contact one of our expert debt advisers today.