Emma Lunn

What does the UK interest rate cut mean for savers, borrowers and investors?

The Bank of England’s next Monetary Policy Committee (MPC) meeting was due to be on 26 March, but members of the committee held an emergency meeting on 10 March where members voted unanimously to reduce the base rate.

The move is part of a package of measures that aim to help businesses and consumers during the turmoil caused by Covid-19.

But how will the rate cut affect mortgage borrowers, savers and investors?

Mortgages

Anyone on a tracker mortgage should see the interest rate they pay cut by 0.5%. 

Royal Mint launches physically-backed gold ETC

The Royal Mint Physical Gold Securities ETC, called RMAU, will list on the London Stock Exchange, and is the Royal Mint’s first listed financial product.

Each ETC is equal to 1/100th of a troy ounce of gold, which is approximately $15 per ETC based on the current price of gold.

The Royal Mint has partnered with specialist white label ETF issuer, HANetf to issue, manage and distribute the RMAU ETC. 

Sajid Javid resigns as chancellor amid Cabinet reshuffle

Sajid Javid has stepped down as chancellor of the Exchequer as prime minister Boris Johnson reshuffles his Cabinet.

Javid resigned, despite being given the opportunity to stay in his post, because Johnson demanded that he sack his team of aides.

Rishi Sunak will replace Javid as chancellor. Sunak was first elected to Parliament in 2015, and previously served as chief secretary to the Treasury, the second in command to the finance minister, overseeing public spending.

House prices fall in April

House prices fell slightly last month and look likely to remain flat through 2010, according to the Halifax house price index.