The Bank of England cut interest rates to 4 per cent today amid amid growing concerns about the UK's sluggish economy.
The Bank's Monetary Policy Committee (MPC) reduced the base rate by 0.25 percentage points to 4 per cent at lunchtime.
This is the fifth reduction since August last year, when interest rates started steadily coming down from a peak of 5.25 per cent.
A cut will release pressure for mortgage holders and home buyers amid hopes that cheaper deals will enter the market if the Bank's base rate is lowered further.
Prior to the announcement, economists had reckoned a slowdown in the jobs market and stagnant economic growth would prompt the MPC to slash rates on Thursday.
