The Bank of England has cut interest rates to 4%, taking the cost of borrowing to the lowest level for more than two years. The cut, from the previous rate of 4.25%, is the fifth since August last year, but was only narrowly backed by the Bank's policymakers who took two votes to reach a decision.

The Bank of England cut interest rates on Thursday but four of its nine policymakers - worried about high inflation - sought to keep borrowing costs on hold, suggesting the BoE's run of rate cuts might be nearing an end.

The Bank of England has cut interest rates by a quarter of a point to 4 per cent in a knife-edge vote that prompted investors to rein in their expectations for further loosening. In an unprecedented second vote by the Monetary Policy Committee,