The Bank of England has cut UK interest rates to 5.5% from 5.75% amid signs that the economy is slowing.

Expectations of a rate cut had risen in recent days after figures indicated that economic conditions had deteriorated over the past few weeks. Analysts had said that the Banks decision was one of the hardest it had faced during the past decade, because of concerns about inflation and the impact that a rate cut may have on price growth.

Ross Bowen, managing director of Connells S&V, said: “The Monetary Policy Committee’s decision to cut rates today is very welcome and we are now looking for the next cut to follow soon to help rebuild consumer and market confidence. We need to avoid the current property market doldrums having a wider detrimental impact on the economy.”