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Bank of England cuts interest rates to 1%

The Bank of England has cut interest rates to just 1%.

This is the fifth interest rate cut since October, when the interest rate was at 5%.

The British Retail Consortium said that the cut was understandable but that it should not be viewed as the only route to reviving the economy.

BRC business director Jane Milne said: “Interest rate cuts are not the only tool to fix the recession. The key issue now is not the cost of credit - but its availability. The BRC’s Shop Price Index shows the weakening pound is feeding through to the cost of imports and some shop prices.”

Milne added: “The Bank of England faces a fine balancing act between further weakening sterling and attempting to revive the economy. What we need now is better access to credit and a boost to consumer confidence.”

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