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Bank of England cuts interest rates to record low

The Bank of England has cut interest rates by 0.5% to 1.5% - the lowest rate in the bank’s 315 year history.

The cut will be welcomed by retailers who are desperate for the Government to implement more measures to stimulate consumer spending and consumer confidence.

However earlier cuts in interest rates have had little impact on shoppers so far, but it is hoped that falling mortgage costs should eventually filter down to consumers, freeing up some of their cash.

Yesterday Marks & Spencer chairman Sir Stuart Rose said the impact of any reduction in interest rates today would be “marginal”. He said: “I think whether interest rates come down by another 1% it’s not going to make a lot of difference.”

To read more of Rose’s views on the outlook for 2009 click here.

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