Interest rate cut to historic low of 1.5%

Jan 8 2009 By nebusiness

THE Bank of England made history today by slashing interest rates to an all-time low of 1.5%.

Rate-setters cut borrowing costs from 2% to 1.5% - the lowest since the Bank was founded in 1694 - but disappointed those looking for an even bigger move to combat a worsening recession.

The Bank is attempting to offer relief to borrowers and businesses but mortgage customers have been warned not to expect lenders to pass on the cut in full.