Its shock downgrade compares with 1.7% predicted in November, while the Bank also cut its outlook for 2020 to 1.5%. "The report sends a clear message the BoE is unlikely to raise rates in the coming months", he said.
Financial markets have cut almost one full quarter point rate rise over the next two years since the last inflation report in November, factoring in just a 50/50 chance of one hike in 2019.
Business and farm leaders said they were also sceptical about the impact of the rate cut - and said it was the inability to borrow that was the biggest problem.
'A period of softer growth domestically and in the rest of the world was likely to be prove only temporary, ' the Bank said.
The RBI raised rates twice a year ago over concerns about rising prices but with inflation now at an 18-month low the bank said it was time to opt for a reduction.
The main reason the BoE thinks underlying inflation pressures will build is faster wage growth after Britain's unemployment rate hit its lowest level in more than 40 years.
"Eurozone stocks are suffering greatly as investors are fearful the region could be in for an economic downturn", CMC Markets analyst David Madden said.
But the currency rallied after governor Mark Carney said Brexit clarity would boost forecasts and a "robust but constructive" meeting between Theresa May and Jean-Claude Juncker in Brussels.
Government officials were quick to praise the RBI's move, while economists were more cautious, concerned that the monetary and fiscal stimulus would be inflationary.
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Longest-serving Congress member John Dingell dies at 92
Dingell was a champion of the auto industry and was credited with increasing access to health care, among other accomplishments. At Georgetown University, he earned a bachelor's degree in chemistry in 1949 and a law degree three years later.
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Ocado stressed it had comprehensive insurance for the property, stock and equipment and for business interruption losses. According to the spokesperson, there has been substantial damage to the Andover building and its contents.
Prince Philip gives up driving licence
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China hits out at Modi after his visit to Arunchal Pradesh
It is the Prime Minister's first visit to the state after the Telugu Desam Party (TDP) pulled out of the BJP-led NDA a year ago . In Vijayawada, the CPI and the CPI-M organised a demonstration on February 9 protesting the Prime Ministers visit.