The Bank of England has cut interest rates for the fifth consecutive month since October, from 1.5 to one per cent.

The Bank of England has cut interest rates for the fifth consecutive month since October, from 1.5 to one per cent.

The cut comes after official GDP data confirmed that the UK is in a recession. But with rates already at an all-time low, some commentators have questioned how much further reductions in the base rate will help businesses and individual borrowers.

Andrew Mortlake, a partner at mortgage broker Cobalt Capital, says, ‘There are real question marks over the effectiveness of this latest reduction, as while it will benefit certain borrowers, it will certainly not solve the broader issues in the lending market, specifically the availability of funds.’

He adds, ‘If lenders cannot attract savers, the great thaw in lending that we are all waiting for could be further delayed.’