INSTANT VIEW - BoE cuts interest rates to 1.50 pct

LONDON (Reuters) - The Bank of England cut borrowing costs by 50 basis points to 1.5 percent as expected on Thursday, a record low, amid signs Britain is heading for a deep recession.

Following are reactions from business groups and economists to the decision.

MARC OSTWALD, MONUMENT SECURITIES

"It would appear to us that they have reverted to doing what the market tells them to do. There really isn't a lot in the statement that we didn't know already. There is not an obvious commitment in this to cut rates again in February but I think we should wait for the minutes on that.

"Sterling has got a bit of a boost from the statement, I suspect because there's not an obvious commitment to cut rates again in it.

"There's room to cut rates again. I would suspect they will cut rates again, whether necessarily in February I'm not sure."

MICHAEL COOGAN, COUNCIL OF MORTGAGE LENDERS

"This cut is a double-edged sword for retail based lenders. While lower mortgage rates provide borrowers with the opportunity to repay their mortgage debt more quickly to reduce the term, lower savings rates impact lenders' ability to attract deposits and maintain the flow of mortgage lending in 2009.

"The market is still not functioning properly and is likely to lead to a fragmented approach by lenders, as they try to balance the interests of savers and borrowers and other pressures on their businesses, in responding to today's announcement."