News Article - 06 February 2009
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The Bank of England base rate has been slashed for the fifth consecutive month, this time by half a percentage point taking it to one per cent, in news which may be of interest to businesses looking to control costs.

On announcing the decision, the Bank stated: "The global economy is in the throes of a severe and synchronised downturn."

Set by the monetary policy committee (MPC), interest rates are now lower than they have ever been since the Bank was first established.

And it appears that the Liberal Democrat party were in agreement with the decision, claiming that the MPC has "no choice" but to reduce the base rate again.

"The Bank of England has to do what it can to reduce the cost of credit in the face of deepening recession. However, there is now only very limited scope for cutting interest rates, but there is no alternative but to go down that route," the party noted.

Last week, the International Monetary Fund predicted that the world was in the grip of the worst financial downturn since the Great Depression.

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