The Bank of England has cut interest rates from 5 per cent to 4.75 per cent.
Today's cut in the rate of borrowing follows decisions by the US Federal Reserve and the European Central Bank to trim their lending rates yesterday.
The Federal Reserve lowered its benchmark overnight bank lending rate by 0.5 per cent to 3 per cent, the third time this year the Fed has cut interest rates between scheduled meetings.
The European Central Bank cut its key interest rate, also by a half-point, to 3.75 per cent in a surprise move.
Today's decision is the first time the Bank of England has elected to change rates outside of an official policy meeting since it was given control of monetary policy by the British government in 1997.
But investors are more concerned with the impending US military retaliation than another rate cut, said Mr Justin Urquhart-Stewart of 7 Financial Management.
He said: "I suspect the response by the markets will be a massive yawn, the reason being that everyone else has already cut rates.
"The real focus is on what's going to happen with the US military retaliation. Will it be clean and clear, or will it be drawn-out and bloody?"
PA