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"The golden ring here, if you can catch it, is confidence," said Tanya Azarchs, the bank rating analyst at Standard & Poor's.
"In a couple years, when these loans are going bad, everybody's going to say, 'Oh me, oh my, how did this happen?' " said Christopher Whalen, managing director of Institutional Risk Analytics, a bank rating and consulting firm.
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How does your bank rate?
How much could Bank rate rise by?
If you have collateral, the bank rate is 25percentt a year.
The first was a rise in the bank rate.
Further cuts in the bank rate look inevitable.
The Bank rate has been held at 0.5% since March 2009.
Bank rate has been 0.5% or lower since 2009.
Part of the argument against cutting Bank rate has been its ineffectiveness owing to it lowering bank lending rates contractually tied to Bank rate but not funding costs.
European stocks rose sharply after the bank rate announcement.
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