The FTSE 100 and FTSE 250 both rose Thursday following the Bank of England’s decision to cut interest rates to a record low of 0.25%.

The FTSE 100 was up 1.5% after the rate decision, while the FTSE 250 was up 1.4%.

Shares in FTSE 100 housebuilders and property groups were among the biggest risers. The rate cut was the first since March 2009 and took the UK cost of borrowing to its lowest since 1694.

Persimmon was the third biggest riser among the blue chips with a 3.4% increase to 1692p, while shopping centre developer Intu Properties was fifth with a 3.1% gain to 304.3p.

Taylor Wimpey rose 2.15% to 151.9p and Barratt Developments nudged up 1.5% to 428.5p.

Sterling and gilt yields, however, saw falls following the Monetary Policy Committee’s decision to cut rates by 25 basis points.

The pound fell 1.36% on the day to $1.3150, while the 10-year Gilt hit 0.64%, 16 basis points down.