OK, it sounds dramatic and, under normal market conditions, a 0.25% cut in the Bank of England (BoE) base rate would not attract too much attention. But this is far from a normal market and after SEVEN years of keeping rates on hold…WOW!

This brings to an end the longest period of no change in rates since the Second World War/post-War years of 1937-51. The bank rate was cut from 1% to 0.5% in March 2009, and had remained there ever since. Now let's hear some opinions from those in the finance/real estate sectors.

Alan Wilde, head of fixed income, global, at Baring Asset Management, said after the interest rate cut: "The market underestimated the determination of the MPC to get on the front foot and ease policy. The bazooka was deployed via the expected rate cut as well as a 6-3 vote to recommence Asset Purchases (QE) by £60bn over the next 18 months and an 8-1 vote to purchase a further £10bn of UK non-financial Corporate bonds.

"Furthermore, to offset any damage to bank profitability from the move to 0.25% rates, the Bank has offered commercial banks up to £100 billion in a new Term Funding Scheme to ensure money is available to borrowers in the real economy.