Bank cuts base rate

The Bank of England's monetary policy committee (MPC) has announced a cut to the base rate, which may lead to lower interest charges for small businesses.

At noon today the MPC revealed that it had voted to trim the base rate by 0.5 per cent to a new record low level of half of one per cent.

It stated that the decision had been taken due to the continued economic downturn and the expectation that inflation will fall below its target range later this year.

This concern also prompted the Bank to reveal a new £75 billion scheme to buy assets in a programme of monetary loosening, which will increase the level of corporate credit.

Both moves may help those seeking to steer their firms through the recession, in addition to which some may wish to access further advice on how to run their businesses better.

Following the rate decision, Lloyds TSB revealed it is passing on the cut to its small business customers.

By Christopher Evans

Published on: March 5, 2009

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