The Bank of England has cut interest rates by 50 basis points to 0.50% in a move widely predicted by City analysts.
It is the lowest level in the Bank’s 315-year history.
The move follows a series of rate reductions in previous months to try to limit the effects of the recession.
In February, the Bank cut rates from 1.5% to 1% and in January dropped rates by 50bp to 1.5%.
Analysts were expecting the MPC to cut rates today because concerns over the health of the overall economy were far stronger than concerns that further cuts could damage the profitability of lenders who may be obliged to pass rate cuts on to borrowers.
