The 1 per cent cut is to help further stimulate the economy, in the face of worsening economic data.
A rapid fall from interest rates of 4.5 per cent a month ago, the 2 per cent rate would be the lowest seen in the UK since 1951.
The bank is keen for a sharp stimulus, as evidence emerges that the recession will be worse than initially predicted.
Governor Mervyn King has already gone on record to say: ‘We will take whatever action we feel is necessary on interest rates, to steer the economy back into calmer waters.’
This sets the scene for a further cut today. Come back to Car Dealer for full analysis of how the industry reacts to the change…