BoE cuts interest rates to 0.5%

The Bank of England has cut official interest rates by half a percentage point to a new record low of 0.5%.

Thursday's announcement marked the sixth consecutive month the central bank has lowered rates - nearing a floor - and attention is turning to other methods to ease the economic crisis.

The bank has sought government approval to begin so-called quantitative easing - a technical term that describes the technique of expanding the supply of money in the economy.

Britain fell into recession last year for the first time in nearly two decades and economists have warned that the downturn could be prolonged.

AP