Rates in the UK were cut to lowest point ever over Brexit concerns. In short, the increased uncertainty over the move to leave the EU has impacted confidence and business investment.
This has affected consumer spending, the real estate market, hiring and importantly potential moves out of the UK in critically important industries such as finance and banking. Additionally, manufacturing firms, for example Nissan, are in a state of limbo and are awaiting the final negotiations with the EU and UK to determine if they need to move.
The rate was lowered to 0.25 from 0.5 which was in place since March of 2009. Further cuts are possible according to Governor Carney but negative rates were ruled out. Additionally, £60 Billion pounds or around $80 Billion US Dollars of stimulus were added for good measure.
Further moves would depend on how fast the UK negotiates with the UK and the structure of the final deal. A longer period of uncertainty in policy will mean that more drastic steps will be needed.