The Bank of England has cut interest rates to an all-time low of 0.25%, lowering borrowing costs for households and businesses.

It is the first change in interest rates since they were set at 0.5% in March 2009.

The bank’s Monetary Policy Committee announced its unanimous decision as it unveiled a series of measures designed to stimulate the economy.

Governor Mark Carney indicated after the EU referendum the bank would be likely to take action to combat any slowdown caused by the Brexit vote.

New measures include a new quantitative easing programme which involves buying up to £10 billion of corporate bonds and buying an extra £60 billlion of UK government bonds, taking its total asset purchases to £435 billion, using the central bank’s reserves.

It will also make up to £100 billion available to banks and building societies to mitigate the impact of falling interest rates.

Mark Bailey, managing director of house builder Barrett Homes, who is based in Sevenoaks, said: “This is a positive move from the Bank of England and means more good news for homeowners, particularly those on tracker mortgages.

“The mortgage market is currently very competitive and we expect to see lenders launching even more exciting new products soon.

“With interest rates at a record low now is a particularly good time to speak to a mortgage adviser to understand the competitive products available.”

Jane Ollis, chairman of the Kent branch of the Institute of Directors, said that Kent business leaders need the confidence to keep hiring and making investment decisions.

“From a pensions point of view, many are going to see the income offered by an annuity purchase fall even further..." - Jamie Smith-Thompson, Portafina

She said: “The view of the IoD nationally is that interest rate cuts alone are not enough to bridge the confidence gap."

She said Kent is in a fortunate position to have access to interest free loans through various Kent County Council schemes and that firms should be bold in their outlook.

“Now, more than ever, is the time for businesses to continue with plans for expansion," she said.

“History tells us that today’s fastest growing businesses were born in difficult times.”

Jamie Smith-Thompson, managing director of Strood-based pension advisers Portafina, said it is not good news for the majority of savers.

He said: “From a pensions point of view, many are going to see the income offered by an annuity purchase fall even further. By contrast this is good news for those wishing to transfer out of a final salary scheme as they will likely be offered a higher transfer value.

“Something else to bear in mind is that it may put further pressure on final salary schemes that are in deficit.

“Depending on how they are invested, schemes may find it harder to sustainably pay members who are already taking benefits and also harder to make up the gap for those members who will be retiring in the future.”

Keith Newman, managing partner of Maidstone accountant Crowe Clark Whitehill, said: “The interest rate reduction from 0.50% to 0.25% gives the impression that interest rates will not be going up in the immediate future and encourages people to buy now rather than delay.

"This move enables us to believe that the Bank of England and the Government are looking to support the economy to try to avoid it declining.

"The weakening of the pound is good news for exporters and will discourage imports, which will help improve the balance of payment deficit.

"If this also causes inflation it should be beneficial in reducing the value of private business and Government debt in real terms, which can help sort out a myriad of other problems.”