Interest rate cut

The Bank of England has cut interest rates by a quarter of one per cent to 4.5 per cent.

The monetary policy committee backed a 0.25 per cent cut after narrowly voting to leaves rates unchanged at their last meeting.

Amid growing pessimism about the state of the economy, the bank decided to act.

House prices are dropping in some areas and manufacturing and commerce are reporting slowing sales.

Stakeholder Response: Council of Mortgage Lenders