The Bank of England has slashed its interest rates to a record-low of 0.25% as economy borders recession after Brexit.
Bank’s Monetary Policy Committee’s policymakers reached consensus over bringing the interest rates down from 0.5% to 0.25%.
Economists agree that a certain “cushioning” from the financial crisis was necessary however, they doubt its efficacy with official rates and borrowing costs of the government hitting new lows.
The Bank also plans to develops new schemes to promote banks to lend to households and businesses.
Rates of unemployment are expected to increase while house prices would most likely fall over the course of next year.
The last cut down of interest rates was in March 2009, during a severe financial crisis.