There was a muted reaction from financial markets, as the move had been widely expected. London's index of leading shares, the FTSE 100, was up 35 points a few minutes after the decision was announced. Outlook gloomy There are fears that with consumer and business confidence plunging, the UK economic slowdown has now become unstoppable. Retailers are having a tough time Figures out this week showed the extent that manufacturers were suffering from the economic downturn. It was the heaviest three month fall since early 1995.
Retailers suffering Latest figures from the shops also paint a gloomy picture.
Data compiled by the British Retail Consortium show UK retailers had another bad month in November, prompting fears that they will be left with billions of pounds of unsold Christmas stock. A further cut may be required to encourage shoppers to start spending. The BBC is not responsible for the content of external internet sites.