INTEREST rates have today been cut to 5.5per cent.The decision by the Bank of England to cut rates by a quarter of a percentage point sparked fears of an impending slowdown in the UK economy.

INTEREST rates have today been cut to 5.5per cent.

The decision by the Bank of England to cut rates by a quarter of a percentage point sparked fears of an impending slowdown in the UK economy.

The cut was the first reduction in interest rates since August 2005.

For borrowers the reduction could represent a £16 a month saving on the cost of a typical £100,000 mortgage.