Interest rates slashed to record low of 1.5%

UK interest rates have been slashed to an all-time low today as the Bank of England fights to ease B...

UK interest rates have been slashed to an all-time low today as the Bank of England fights to ease Britain's economic downturn. The central bank cut the base rate by 0.5% to 1.5%, the first time the level has fallen below 2% in its 315-year history. F&C asset allocation head Paul Niven welcomed the move, but says it is unlikely to provide much support to the shrinking UK economy. "Over the coming months we expect to see further action to try and unfreeze credit markets," he says. "Quantitative easing, government guarantees on bank lending as well as further recapitalisation programm...