Old Lady lowers rates to 5%

The Bank of England's Monetary Policy Committee (MPC) cut rates by a quarter point to 5% on Thursday.

The Bank said it was acting to "offset the effects renewed strains in money markets are having on household and corporate borrowers."

"Credit conditions have tightened and the availability of credit appears to be worsening," the Bank said.

CPI inflation rose to 2.5% in February and the committee expects inflation to rise further this year, "reflecting the continuing impact of higher energy and