The bank says the rate cut will be effective from 12 January.

John Maltby, managing director of Lloyds TSB Commercial, says: “Today’s announcement takes the Bank of England base rate to an unprecedented low and we want to give our customers the full benefit as soon as possible to help them through a particularly tough year.  “As well as our promise to pass on rate reductions, our lending continues to grow and we’re committed to supporting viable businesses wherever possible when they need finance to help them through short term difficulties.”

The banks have been criticised for not passing on the raft of rate cuts made by the central bank during the past year.

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