Brexiteer and respected economist Andrew Lilico says the Bank of England's rate cut may turn out to be premature and unnecessary, external. He writes:

"The Bank thinks Brexit will mean 2.5% less GDP growth over the next three years, though probably no recession, and that what happens later depends crucially on our subsequent international trading relationships. I said in advance of the referendum a Brexit vote would probably mean 2-3% lower GDP growth in the period around exit, caught up later. So no surprise in the Bank’s numbers, there".  

Image source, DigitalLook

The FTSE had a strong day as the Bank of England announced it's first interest rate cut since 2009.

The FTSE 100 closed up 101.89 points at 6736.29.

However, the pound was 1.4% down against the dollar at $1.31.

The biggest gainer of the day was insurance company Aviva - up nearly 7% to 411.30p per share.

News at pharmaceuticals company Hikma was not as good, with shares finishing down 17% at 2216.00p.

Image source, Getty Images

The Chancellor of the Exchequer Philip Hammond has welcomed the Bank of England's actions in cutting interest rates to 0.25%, and in expanding its quantitative easing programme. 

Mr Hammond told the BBC the measures were intended to support the economy during "this period of uncertainty, as we negotiate our exit from the European Union". 

He added: "We will now look very carefully at the data that's published over the summer and the OBR report in the autumn, to see what's actually happening in the real economy, in response to what was a very large package that the governor has announced."

He added: "As we approach the autumn statement we'll consider whether there's any need for a fiscal response."

David Blanchflower doesn't hold back in attacking those who disagreed with buying government bonds as part of the MPC's latest round of stimulus.

While the vote to reduce the UK's interest rate, external was unanimous, things were a little less clear when it came to the rest of the stimulus package announced by the Bank of England.

Eight of the nine members supported the introduction of a corporate bond scheme, and only six members supported further purchases of UK government bonds.  

Daniel Hegarty, the founder of digital mortgage broker Habito says despite the rate cut, many borrowers will need to do some work to reap the benefits.

"The real problem is that people are afraid of their finances. Almost 5 million Brits don’t know how much their mortgage is costing them and a quarter of all mortgage holders would refuse to switch their mortgage regardless of the potential savings on offer. This aversion to switching mortgages is costing consumers collectively an estimated £29 billion per year – the result of a fractured industry, stuck with 30-year old processes, so difficult to navigate that customers have given up trying. Whilst we’re in for a bumpy few years as the market finds its feet again, it’s time to stop burying our heads in the sand and take control of our personal finances – especially the biggest financial commitment most of us will ever make."

BBC's Victoria Fritz tweets about the problems posed by plummeting UK gilt yields

Image source, PA

Former pensions minister Ros Altmann says: "Today's decision by the Bank of England to cut short-term interest rates and expand the QE programme is another blow for UK pensions. 

"Both defined benefit and defined contribution pensions have become more expensive as rates keep falling."

She said that the Bank's announcement"completely ignores [the] pension impacts of its policies".

Image source, Getty Images

Elsewhere in business news, Goldman Sachs warns that the Brexit vote may adversely affect some of its operations in the EU and could require the bank to restructure some of its businesses. 

Brexit is also likely to change arrangements by which firms in the United Kingdom are able to provide services in the EU, which may adversely affect the way the bank conducts certain operations, the bank said in regulatory filing, external. 

Goldman, which did not break down its exposure to the EU or the UK, said the timing and outcome of Brexit negotiations were highly uncertain.

Let it never be said we don't bring you the best in public service journalism. Here is an action shot of the governor of the Bank of England, inspired by a metaphor from our economics editor, Kamal Ahmed.

Read more about Mr Carney "ripping his shirt off" here:

Economics editor Kamal Ahmed tweets:

 BBC personal finance correspondent tweets:

Commenting on the decision of the Bank of England to cut interest rates to a record low, the Liberal Democrats say: