The Bank of England cut the UK interest rate yesterday from 0.5% to 0.25% and Mark Carney said there was scope to cut the interest rate further if the economy worsens. The Bank also announced a range of measures to stimulate the UK economy, including a £100 billion scheme to force banks to pass on the low interest rate to households and businesses. It will also buy £60 billion of UK government bonds and £10 billion of corporate bonds. The UK economy is contracting at its fastest rate since the financial crisis and economic think-tank NIESR is reported to have said the country would go through a "marked economic slowdown" this year and next, although it stopped short of forecasting a recession, saying the chances of the UK economy suffering a downturn in the next 18 months were 50/50. NIESR said further that inflation will also pick up, rising to 3% by the end of next year..