Issue 31
Cut in interest rates
UK interest rates have been cut to a record low of 0.25% by the Bank of England.
The Bank said it expected the economy to stagnate for the rest of 2016 and suffer weak growth throughout next year.
The last interest rate cut — to 0.5% — was in March 2009 at the height of the economic crisis. So the rate has remained at 0.5% for over seven years.
Last month, the Bank of England’s Monetary Policy Committee (MPC) voted to hold interest rates, despite economists predicting a cut.