Today the Bank of England has cut interest rates by an amazing half point to only 1%, which is their lowest level in well over 300 years, as it tries to drag the UK out of the doom and gloom brought on by the credit crunch.

The monetary policy committee had voted to cut the cost of borrowing again today to a new record low after hearing fresh evidence that the UK economy is in poor shape.

Some people in the city of London had hoped for a full percentage point cut to help struggling businesses effected by the credit crunch.