Interest rate cut 'will hit Bristol pensioners'.

(From Bristol Evening Post)

Bristol finance experts say the Bank of England's slashing of interest rates is good news for the economy - but terrible news for pensioners.

The shock one-and-a-half percentage point cut left the Bank's base lending rate at three per cent - the lowest level since 1955.

The size of the cut - the most dramatic since 1981- is thought to signal the Bank's fear the UK is heading for a long recession.

It follows an emergency cut in rates last month from 5 per cent to 4.5 per cent.

Borrowers on standard variable rate mortgages could see average monthly payments on a GBP150,000 mortgage fall by around GBP138 - …