Breaking News-RTRS-UPDATE 3-BoE cuts rates to 2 pct, says more action needed

LONDON, Dec 4 (Reuters) - The Bank of England slashed interest rates to their lowest level since 1951 on Thursday but indicated more needed to be done to prevent a credit squeeze tipping Britain's economy into a prolonged recession.
The one percentage point cut to 2 percent had been widely anticipated following a stream of unremittingly bleak economic indicators. Some in the market had been looking for an even bigger cut.