The Bank of England entered uncharted territory on Thursday with its official rate cut to 1.5 per cent, the lowest since it was founded in 1694. But many fear it has not done enough.

Ross Walker of the Royal Bank of Scotland, who shares the view of Alistair Darling, the chancellor, that the country is “far from through” the recession, says that “2009 is also likely to witness radical monetary policy developments”.