Bank of England cuts rates to 0.25%

August 4, 2016 1:13 pm Published by

The Bank of England has changed its interest rate policy for the first time since 2009 cutting the base rate to 0.25%.

The Monetary Policy Committee had previously voted to keep the interest rate at 0.5% for a total of 88 months.

The previous rate of 0.5% was the lowest seen in the UK for more than 300 years.

As late as August 2008 the rate stood at 5% before a number of incremental cuts were made by the Bank of England.

The base rate took its final step down to 0.5% at a desperate time for the UK economy ans as policymakers attempted to stem the rush towards financial depression.

Before the decision to quit the EU the Bank of England had been priming itself to eventually start raising rates.

The Bank has also extended its Quantitative Easing programme pumping another £60bn.

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This post was written by Debbie Brown

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