The Bank of England has slashed interest rates by one-and-a-half points, from 4.5% to just 3%.

Frantic consultation of the history books isn't really necessary to be able to confidently declare that this is a remarkable day in the history of this economic crisis.

Most pundits expected at least half a point off, a few thought a full point. So what has the Monetary Policy Committee been shown that we're all not aware of yet? And so is this the best news we've heard all week, or a sign that the Bank thinks things are even worse than we imagine?

13.18 It turns out that Base Rate is now at a 53-year-low. The FTSE-100 surged on the news for about 30 seconds, but is now more or less where it was before the news. No doubt everyone is digesting the BoE's comments that "There has been a very marked deterioration in the outlook for economic activity at home and abroad."

13.20 The European Central Bank has cut rates by half a point, from 3.75% to 3.25%.

13.38 Economists at Bank of America say "We continue to look for a 2% trough in the Bank rate in 1Q 2009 with a rising chance the BoE could lower rates even further to 1.5%."

14.34 Okay, we've just worked out that this is the first time ever that UK base rate has been below the official euro ECB rate..... The FTSE-100 is still trying to make sense of it all, trading sideways at the moment.

19.50 Just spotted this statement from KPMG chief economist Andrew Smith, saying "it would not now be surprising to see rates down to 1% or even lower within the coming year". Japanese-style, decade-long, zero-interest rate recession, anyone?

09.50, 7/11/08 Naturally, everyone is baying for bankers' blood if they don't pass on the 150bp rate cut in full to their borrowers. Obviously, we wouldn't be in this mess if it weren't for the fact that Libor is much more important than Bank Base rate when it comes to determining the banks' finance costs. The British Bankers Association releases the first-reaction Libor rate around noon today. We'll update you.

Libor news: click here