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The Bank of England cuts rates to 1.5%

 

The Bank of England has cut interest rates to 1.5%, the lowest level in its 315-year history, as it continues efforts to aid an economic recovery. The half percentage point reduction brings interest rates below 2% for the first time since the Bank of England was founded in 1694.

The Bank has now reduced rates four times from October's 5% level.

BBC economics editor Hugh Pym said the Bank was now being more cautious after the sharp cuts in interest rates in November and December.

"There is a hint in its statement that it may sit tight for a while to assess the impact of the big reductions over the last couple of months," he said.

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