The Bank of England has cut interest rates for the second time this year, in good news for mortgage-holders and other borrowers. Policymakers at the Bank of England opted to reduce interest rates to 4.

The Bank of England has been urged to slash interest rates at a “further and faster” pace after dropping the prime rate to 4.75 per cent. Threadneedle Street cut interest rates for a second time this year after inflation fell to 1.

The Bank of England on Thursday said it was cutting its key interest further after UK inflation hit a three-year low and signalled more reductions, easing pressure on borrowers.