Commenting on the decision, Lee Hopley, EEF Head of Economic Policy, said:
"Whilst today's cut is welcome it will pass many companies by given how low rates are already. Manufacturers are far more concerned with the health of the economy, the financial system and greater access to cheaper credit. While it may be a bold step into the unknown, swift and steady implementation of unconventional measures from the Bank is now the right move."
EEF yesterday published figures showing that despite interest rate cuts the cost of borrowing had increased and access to finance had decreased.