>> It's the Bank of England's biggest intervention in Britain's banking market in four years, a quarter point interest rate cut aimed at easing the economy through a period of uncertainty. There's also 100 billion pounds of new funding for lenders to help them pass on the right cut to borrowers.
Bank Governor Mark Carney says there's no excuse for not passing on the cut in full, but Reuters' economics correspondent David Milliken says some companies are reluctant to play along.>> The challenge for some banks is that they already raise funds at rates cheaper than the Bank of England is offering.
So that means that, if they do actually cut rates for borrowers, they will end up sort of making less profit, or potentially even a loss than they would before. Another factor as well is that the economic outlook is getting a bit darker as well, and so banks may be more concerned that sort of mortgages might turn bad or business loans also sort of might turn bad as well.
>> The central banks moved quickly to try and stimulate the economy after Britain' s decision to quit the EU. But it could take months for competitive forces to kick in, prompting banks to lower their lending rates.>> I think the bank will be hoping that there will be an impact fairly quickly, but certainly of the Bank of England Deputy Governor Ben Broadbent, when I was speaking with him last week it was clear that this isn't going to be instant, that it is something that will take a bit of time to feed through.
>> Analysts say the bank's post-Brexit plan is likely to provide no more than a small boost to the economy, but they say it won't be a game changer.