UK Interest rates hit all-time low

This BBC article has some interesting data on the latest UK economic situation. Read it and answer the following questions:

1) Is an interest rate cut an example of fiscal or monetary policy?

2) Explain briefly what the Bank Of England aims to achieve by lowering the interest rate?

3) Based on the evidence if the article – do you think that cutting interest rates will achieve the aims of the Government?

4) Why do you think that the UK Pound appreciated against the Euro after the cut in interest rates?

5) Explain the term ‘quantitative easing’