Bank shocks with steepest cut for 24 years

The Bank of England on Thursday lopped one-and-a-half basis points off its benchmark rate for the first time since August 1984, confounding expectations of a far less severe move.

The bank cut, the magnitude of which has not been matched since August 1984 nor exceeded since March 1981, leaves bank rate at 3%, the lowest level since 1954.

The scale of the cut was unexpected, with most economists expecting a move in the region of 50 to 100 basis points.

Danny Gabay, a director at Fathom, a consu