INSTANT VIEW - Bank cuts interest rates to 2.0 percent

LONDON (Reuters) - The Bank of England cut interest rates by one percentage point to 2.0 percent on Thursday, taking borrowing costs to their lowest in more than half a century, amid signs the economy is heading for a deep recession.

Following are reactions from business groups and economists to the decision, latest comments first:

BRIAN HILLIARD, CHIEF ECONOMIST UK, SOCIETE GENERALE

"As expected, but in these strange times anything was possible, this isn't the end of the story there will be more. Its interesting that they lead with the comment that the business surveys have weakened further, so those are the PMIs this week but this is obviously a very gloomy part of the story.

"They are obviously front loading it, so we've had 1.5 and now 1 (percentage points). There's more to come, clearly, I would think about another 1 percent."

"The trouble is the Q4 data are going to be truly awful. Q4 GDP is going to fall more than Q3. Clearly more cuts are still on the cards."

STEPHEN GIFFORD, CHIEF ECONOMIST AT GRANT THORNTON

"It will take many months before the full effect of the last few month's dramatic cuts feed through to consumers and help steer the UK economy out of what is predicted to be a long and deep recession.

"These interest rate cuts, combined with last week's massive fiscal injection by the Chancellor, are the first steps on the way to restoring much needed confidence but the economy still has a long way to go."