Interest Rates At 1%

Interest rates have been cut again to 1% from 1.5%.The reduction was confirmed by the Bank of England yesterday in a bid to boost the slowing economy.

It was the fifth cut in as many months, but economists and business groups said it would have little impact on the recession and called on the Bank to start using more unconventional tools of monetary policy.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said: "With growing evidence of how severe the recession is, the Bank needed to cut rates. However, the government now needs to move swiftly to ensure that the other weapons in its armoury are in place to fight the recession. Further delays will increase the risk of more business failures and job cuts."