Base rate cut to 0.5%

The Bank of England has cut interest rates for the sixth consecutive month today, reaching a new rec...

The Bank of England has cut interest rates for the sixth consecutive month today, reaching a new record low of just 0.5%. Central bank chiefs are now expected to begin the quantitative easing process to pump more money into the economy and prevent deflation. Today's 0.5% cut means interest rates have fallen more than 4.5% since the collapse of Lehman Brothers sent the financial system into crisis. However, many still doubt the effect interest rate cuts will have, with many mortgage lenders not passing on savings or unwilling to make new loans, and some commentators have criticised the...