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Advisers criticised the manner rather than the scale of the reduction, which saw the base rate fall to its lowest level since the 1950s in the biggest one-day drop since 1981.

Nigel Speirs, chief executive at Denbighshire-based IFA Buckles Investment Services, said waiting to slash rates because of concerns about inflation had put the UK economy in the same danger as Japan's in the late 1980s and 1990s.

"It's a lot, and it's too late," he said. "It's a big cut, but it should have started months ago. It smacks of panic. There will be further interest rate cuts because this is not going to work in the short term.

"Japan was worried about inflation and the financial services industry instead of dealing with the recession, and they never came out of it. I expect inflation will fall like a stone. I pray we don't get into deflation."

Kevin Morgan, managing director at Hertfordshire-based IFA Consilium Financial Planning, said the size of the cut was commensurate with the problems faced by the UK, which the IMF said will see a sharper downturn than other developed world countries.

"I said, be brave and go 100 basis points," he said. "This was leftfield. It's indicative of the pickle we're in, but it was necessary. Confidence has been shaken terribly.

"The biggest problem is uncertainty, and it's a statement of intent. It's putting out a clear signal to the markets. The only concern I have is if we use interest rates as the only tool. You can't take interest rates below zero."

But at a time when experts are urging consumers to be less indebted, he said the rate cut was terrible for savers.

"I feel desperately sorry for people who rely on deposit-based savings," he said. "They're getting bashed."

Colin Jackson, director at Essex-based IFA Baronworth Investment Services, said packing the rate cuts into a single punch had delivered a serious knock to accounts.

"Should they have staggered it? I'm staggered personally. The Bank planned to have a succession of rate cuts, but they've done it all in one hit.

"The problem is, savers get a massive hit to their interest rates. It's going to affect savers very badly, particularly those who rely on investments for income."

He explained his predominantly elderly clients were concerned about the hike. He said he recommended they lock in their rates before the cut, but those who had not already done so would be forced to shop around for deals.

"We said, now is the time to lock in. They now have to see what is on offer."

Advisers were also concerned at how long it would take for the rate cuts to be passed on to mortgage holders. Kevin Tooze, managing director at Essex-based IFA Equity Partners, said a boost to the housing market was crucial to revitalising the UK economy and governments would force banks to pass the rate cut on if necessary.

"I don't think a reduction in most rates will be passed on very quickly," he said. "Some banks had put up their rates to pre-empt a drop."

But in the longer run, he added, competition should drive rates downwards again.

Mr Morgan said if Libor came down as a result of the rate cut, banks should follow suit.

"We're seeing tracker rates being withdrawn because they're below Libor. They're costing banks money. Libor needs to come down, it will come down and confidence will start to come back. Bankers are notoriously conservative. Once they feel they're protected, they will pass on the savings to consumers."

However, although some economists were concerned a unified rate cut would hurt sterling, advisers did not view this as a concern. Mr Morgan said it would make imports costlier, but that this would be counterbalanced by the easing in commodity prices. Mr Speirs said it might boost exports, which would help the economy during a difficult period.