The Bank of England’s Monetary Policy Committee has today voted to cut the official Bank Rate paid on commercial bank reserves from 4.5% to 3%.
Although inflation is higher than the set target, most economists think that the loominrecession will curb any inflationary pressure in the United Kingdom. A lack of economic activity at home and abroad means commodity prices have fallen sharply.
The US Federal Reserve today cut interest rates by a half percentage point and it left the door open to further reductions if needed.
The unanimous decision takes its target for overnight bank lending to 1%, the lowest since June 2004. Wall Street was united in the opinion the Fed would lower rates, although opinions were split on the likely size of the move.
The Bank of England, are among six central banks to have cut interest rates by half a percentage point in a co-ordinated effort to steady the faltering global economy.
No decision on UK rates had been expected until Thursday 9th October 2008. The move puts the interest rate at 4.5% from 5%.
The Bank of England has cut interest rates by one percentage point, from 3% to 2% - the lowest level since 1951. 
The Bank of England’s Monetary Policy Committee has today voted to cut the official Bank Rate paid on commercial bank reserves from 4.5% to 3%.
The US Federal Reserve today cut interest rates by a half percentage point and it left the door open to further reductions if needed. 
The Bank of England, are among six central banks to have cut interest rates by half a percentage point in a co-ordinated effort to steady the faltering global economy. 
