Bank cuts interest rate to 2 per cent

The Bank of England has cut interest rates by one percentage point down from 3 per cent to a new low of 2 per cent

The Bank of England's decision to cut interest rates by one percentage point today has been welcomed by the British Retail Consortium (BRC) as the sort of decisive action needed to help customers and boost the ailing economy.

Stephen Robertson, BRC Director General, said: "This is exactly the type of decisive action we need during these uncertain times. With the threat of inflation fading, the Bank of England is right to concentrate on jump starting the economy. "Decisions now will greatly influence how long and deep the recession is. "Retailers are passing on VAT cuts and going further with big discounts of their own to help hard-pressed customers. The Bank's job is not done. It must continue to cut rates in the New Year to get the economy heading in the right direction again."