Interest rates hit new low of 1%

Today's move was widely expected by market commentators, though many critics doubt further rate cuts will do anything to boost the ailing economy. Interest rates have fallen by 400 basis points since last summer and, in January, dropped below 2% for the first time in the central bank's 315-year history. Policymakers and the Government hope lower rates will encourage consumers to borrow and spend to drag Britain out of its recession. However, some mortgage lenders have declared they will not pass on any further cuts to their borrowers and many are unwilling to lend to consumers who do ...