Bank of England cuts interest rates to 5.25%

The Bank of England has cut the base rate from 5.5% to 5.25% - its lowest level since October, 1999.

It's the third cut this year, bringing down the cost of borrowing from 6% at the start of the year, with knock-on benefits for homeowners and businesses. The Halifax and HSBC banks immediately announced 0.25% cuts in their variable mortgage rates.