The Bank of England has cut interest rates by one percentage point, from 3% to 2% - the lowest level since 1951.

The move, which followed a dramatic cut in November, has been welcomed by many commentators who said the cut should help the slowing economy.

Prime Minister Gordon Brown has urged lenders to pass on the cut to homeowners and business.

So far, only a handful of lenders have said they will pass on the cut in full to standard variable rate mortgages.

There has been no news yet for savers, with banks and building societies saying their savings rates are "under review".

"If the banks pass the interest rate reduction on, and I hope and believe that they should do so, then it's of benefit to homeowners and businesses right across the country," Gordon Brown told BBC Radio 5 Live.

 Peter Keylock Managing director of Jeffries said. " The severity of the current economic situation has influenced the Bank of England into these agressive rate cuts. This is a timely response and should help ease the recession that the country is in. The repossession levels should now decrease, particulary after the government and major lenders announced the mortgage protection scheme"