The Bank of England on Thursday slashed interest rates to a record low 0.25% and announced a vast stimulus package to combat economic fallout from Britain's looming EU exit.
Policymakers voted unanimously to reduce rates by a quarter-point, the bank said in a statement after its latest meeting, cutting borrowing costs for the first time in more than seven years.
The BoE expects to trim rates again later this year to just above zero, it signalled in a statement after its monetary policy meeting.
The central bank also delivered a £170bn ($227bn) stimulus package, which it added could be expanded further.
And in gloomy news, the institution axed economic forecasts for 2017 and 2018 following the June 23 Brexit referendum -- in its biggest GDP forecast downgrade on record.
As part of the stimulus package, the BoE's Monetary Policy Committee also agreed to re-activate its quantitative easing (QE) bond-buying scheme, lifting it by £60bn to £435bn in the first increase since 2012.
Thursday meanwhile marked the first rate reduction since March 2009, when the bank cut to the previous historic low of 0.50% -- and launched the radical QE policy to stimulate lending and growth during the global financial crisis.
'Unusual' situation 
"It's an unusual situation, it is a very large identifiable supply shock," said BoE governor Mark Carney, in reference to the economic impact of Britain's EU departure, which is not expected for at least two years.
"The economic outlook has changed markedly ... and (this is) consistent with the risks which the MPC saw before the vote.
"We're living through a time of considerable uncertainty."
The BoE will also buy £10bn of corporate debt, while it also unveiled a new scheme worth up to £100bn to encourage banks to lend to households and businesses. That took the total stimulus to as much as £170bn.
Thursday's news sent London's FTSE 100 shares index 1.50% higher in late afternoon deals, while sterling dived against the dollar.