Bank of England reduced the discount rate for the third time since the beginning of the year.

Bank of England on 5 March lowered the base rate by 50 basis points to 0.5 percent. This is a record low rate for all time of existence of the organization, established in 1694.
Earlier in 2009, the regulator has already twice reduced the rate on this amount. C in October 2008 the Bank of England reduces rates for the sixth time.
The last time the Bank of England lowered the discount rate on 5 February 2009. The rate was reduced by 0.5 percentage point to 1 percent a year.
The reason for lower rates as the global financial crisis and the shortage of liquidity in the banking system.
It is believed that this measure will "pump" more in production, as well as boost market lending. This rises and inflation.
UK Economy is in recession in 2008. In the second quarter of last year, the country's GDP declined by 0.5 percent in the third - to 0.6 per cent, while the fourth - on 1,5 percent. At the same time reducing the economy of Great Britain in the last three months of 2008 was a record since 1980.
Expected that the March 5, a reduction in rates has also announced the European Central Bank.