Bank of England cuts rate to 2%

In spite of the 150bps cut in November, the MPC noted that "it was unlikely that a normal volume of lending would be restored without further measures". It added: "Despite the actions taken to raise bank capital, ease funding and improve liquidity, conditions in money and credit markets remain extremely difficult." The cut was greeted more warmly more in some quarters than others. John Pattullo, co-manager of the Henderson Preference & Bond and Strategic Bond funds, said: "Today's announcement from the Bank of England to lower the base rate to 2.0% is a welcome boost to the economy, but...