UK interest rates set for major cut

Bank of England rate setters are expected to slash the cost of borrowing by up to 1% this week in a dramatic attempt to stave off a deep recession, experts said today.

Economists are predicting a reduction of at least 0.5% to 4%, but many believe the worsening economic outlook could see rates slashed by a full percentage point – the biggest ever reduction since the Bank’s Monetary Policy Committee (MPC) was formed 11 years ago.