Low rates force the Bank of England to use unconventional measures

The Bank of England is expected to cut interest rates to a fresh all-time low and start increasing the money supply in an attempt to revive the economy.

Most analysts believe the Bank will cut rates to 0.5% from 1%. An announcement is due at 12pm today/

As rates get closer to zero, the Bank runs out of room to cut the cost of borrowing to stimulate the economy.

As a result, the Bank is expected to try a new method of pumping extra money into the system.

Economists suggest that it could opt to expand the money supply by up to £150bn ($212bn).