Interest rate drop, why?

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The rates have been cut, it was a long time coming and after many talks, the Bank of England has cut the rate to 1.5 percent for the time being, with further possibilities of further cuts in the future if things don’t change for the better over the next few months.

Interest rate drop, why?

Unless everyone in the City has got it badly wrong, the Bank of England will make history later today by cutting interest rates to their lowest level since the Old Lady was born more than three centuries ago. Already base rate, at 2pc, is lower than it has been since 1951. With a further cut of between half and one percentage point expected, rates look certain to fall to their lowest level since 1694.
Following the Fed towards a zero interest rate policy is wrong for three reasons. Cutting rates again is an error firstly because it will continue to miss its principal objective of kick-starting the economy, secondly because it is storing up inflationary problems for the future and thirdly because it is rewarding precisely the kind of behaviour which landed us in this mess in the first place.