Bank cuts interest rates to 3.5%

Industry leaders and homeowners are celebrating after the Bank of England responded to calls for a cut in interest rates. The quarter point reduction to 3.5% marks a dramatic start for new Bank of England Governor Mervyn King in his first meeting as chairman of the Monetary Policy Committee. The MPC has adopted a "wait and see" approach on rates since March but it appears its patience over the pace of economic recovery snapped.