BOE Cuts Interest Rates To Lowest In 300 Years

The Bank of England has cut interest rates by one percentage point to 2%.

The cut was widely anticipated by analysts.

UK interest rates are now at their lowest level since the BOE was founded in 1694 (they were also briefly at 2% in 1951).

The pound jumped immediately following the decision, suggesting that some participants had been expecting a cut of even more. Having touched an intra-day and 6 year low of $1.4470 in earlier trade, at 12.05pm GMT the pound was at $1.4626.

The ECB is expected to follow suit with a half percent rate cut shortly after 12.30GMT.