Interest rates today were cut from 5.75% to 5.5% in a move that will be a boost for the residential development market and home owners.
The Bank of England announced the cuts today despite speculation that it might hold the rate over concerns about rising inflation.
However a weaker residential market and evidence of a slowdown in the economy has led to the cut.
The Bank said that while it remain concerned about inflationary pressures, the global credit crunch contained "downside risks" to both output and inflation because it was tightening the flow of credit to both households and businesses.
The interest rate has remained steady since July follow five increase since the middle of last year.
