The Bank of England have announced that they have cut interest rates by 1%.
This decision, made at noon, reduces the rate to 2% which is the lowest it has been since 1951.
In a poll by Reuters, 40 out of 62 financial experts asked, stated that they thought this was the step that the Bank of England should take.
This comes just one month after the interest rate was cut from 4.5% to 3% in order to help with the growing financial crisis which has led to unemployment rising, a downturn in mortgage lending and high street stores slashing prices in the hope of encouraging public spending.
Financial expert advisors Moneyfacts, say the latest cut will help out those with mortgages, estimating that most homeowners with a repayment mortgage of around £150,000, will save between £20-£75 a month.
Not all lenders are expected to pass on cuts, but Lloyds TSB have announced that they will be passing on reductions to their customers.
However homeowners with a tracker mortgage may not benefit from this cut as they involve tracking the Bank Rate.
This cut is another measure to help Britain fight the credit crunch, following on from yesterdays announcement that government have plans to help those facing home repossession to stall repayments on their mortgages for two years.
