Interest rates cut to 1.5%

The central bank has cut its base rate by 0.5% to 1.5%, the first time rates have fallen below 2% in its 315-year history. The Bank's rate-setting Monetary Policy Committee (MPC) has made deep cuts in recent months following a financial crisis triggered by the collapse of Lehman Brothers in September 2008. However, economists are concerned rates cuts will cease to have an impact on the economy as the base rate approaches zero. Nationwide building society has already announced it will not pass on any cuts below 2% to its tracker mortgage customers, while Lloyds TSB's lending arm, Chelt...