Will borrowers be spared?

Don’t breathe easily. Apart from the lucky minority with mortgages linked to Bank of England’s base rates, today’s rate cut won’t alleviate the mortgage industry misery. The city expected this cut and many expected a larger one, so the all important Libor interbank lending rate remains sky high. As Anatole Kaletsky says today, the pain is just starting. For the mortgage brokers take on today’s cut, read here.

For more business news and analysis head over to Trading Floor.