The aim is to give the slowing economy a further boost, as the recession starts to take effect.
Cuts have been dramatic. The interest rate was 5 per cent in October 2008.
A series of dramatic culls have seen this plunge, as the Government looks to improve credit access for businesses.
Lack of credit has been labeled as a key cause of the recession hardening over recent months.
The Bank of England is to monitor the effects of the latest cut carefully. If it fails to have the desired impact, it may switch to another trick – quantitative easing, or the much-hyped ‘printing of money’.
Car Dealer will be reporting on the industry’s reactions to the interest rate cut as we get them…