Partner Article

Interest rates cut to 0.5%

The Bank of England has cut interest rates from 1% to 0.5%, the lowest in the Bank’s history, in a bid to stimulate the ailing UK economy.

This is the sixth time since October that interest rates have been reduced and the Bank also announced that it would increase the amount of money in the economy by £75bn to try and boost bank lending by using quantitative easing.

Quantitative easing - never before used in the UK - involves assets, such as government securities being bought. The Bank will borrow the money to purchase these, so no new money is actually printed.

This was posted in Bdaily's Members' News section by Ruth Mitchell .