The Bank of England monetary policy committee has announced that it has cut the base rate of interest in the UK to one per cent.
This drop of 0.5 percentage points may come as good news for those hoping to obtain a loan or pay off an existing mortgage.
It is hoped that this latest rate cut, which echoes similar moves in November, December and January, will help to stimulate the British economy and encourage banks to lend to each other once again.
The Bank of England stated that "the global economy is in the throes of a severe and synchronised downturn".
As a result of this, "business and household sentiment in many countries has deteriorated" and "the weakness of the global banking and financial system means that the supply of credit remains constrained", it continued.
Meanwhile, the European Central Bank has announced that its rate of interest will remain unchanged at two per cent.
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