Bank of England cuts interest rates again

The idea is to push lenders to use the extra money supply to boost borrowing – and also to get people and businesses spending cash once more.

Up to £75billion new money will be pumped into the economy under the plan.

Today’s rate cut is seen as a necessary pre-condition for quantitive easing – but with savers being hit hard and lenders reluctant to reduce their borrowing rates the interest-rate decision is likely only to be welcomed by those homeowners with tracker mortgages.

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