Interest rates cut to 0.25%

The Bank of England have cut interest rates to their lowest in 368 years. Base rates are now at 0.25% and a further £60bn of ‘Quantitive Easing’ was also promised with the suggestion that rates could be trimmed yet further by the year end.

Some economists suggest that this is needed and welcome, others are less sure but on Radio 2 I was asked for my views along with Vicky Pryce who was speaking from Athens. I have cut two sections out and added some graphics to illustrate what was going on.

You can hear the whole piece here;-