Bank springs surprise rate cut

The Bank of England has announced a surprise interest rate cut taking the key repo rate to 3.75% from 4%. It is the first rate cut since November 2001, and has surprised the market despite evidence in recent months of an economic slowdown. The reasons behind the cut will not be known until the Monetary Policy Committee, which sets the rates, releases the minutes from today's meeting. However, national mortgage IFA Charcol is warning potential house buyers not to expect the full effects of the cut to be passed on by lenders. "Banks and building societies are unlik...