Bank of England slashes rates 1% to historic low

The Bank of England today ordered a further, drastic one percentage point cut in interest rates to 2 per cent, a historic low not seen since November 1951.

The radical action by the Bank’s rate-setting Monetary Policy Committee (MPC) followed hard on the heels of last month’s surprise 1.5 percentage point rate cut that reduced rates to a 54-year low of 3 per cent.

The latest move came as the nine-member MPC stepped up its newly aggressive campaign to stave off the threat of a severe and prolonged recession.

Times Archive, 1951: First rise in 11 years takes rate to 2.5%

Clearly, simply, and starkly, the Chancellor presented the most up-to-date picture of the country's economic plight

• Times Archive, 1932: Crisis pushes rates to 2%

• Times Archive, 1939: Bank rate back to pre-war 2%

Related Links

• House prices fall at fastest rate in 25 years

• UK mortgage holiday 'could help 9,000'

• Pound falls further ahead of expected rate cut

Multimedia

• Full statement from the Bank

• Common interest: MPC decisions 2007 - 2008

After facing a barrage of attacks accusing it of previously moving too slowly to stem the slump in the economy, the Bank has, over the past month, decisively switched tactics in response to a swift and severe worsening in the economic outlook.