Surprise Cut in Interest Rates
Following on from this morning’s news of the government-backed bail-out of the UK’s Banks, The Bank of England has cut interest rates, a day earlier than expected.
October’s rate decision by the Monetary Policy Comittee was not due until tomorrow.
The Bank of England has cut the interest rate by 0.5% with the interest rate now at 4.5%.
The European Central Bank also cut its rate, down from 4.25% to 3.75%, whilst the Fed in the US slashed rates from 2% to 1.5%
Central banks in Canada, Sweden & Switzerland have also cut their interest rates in a globally coordinated move.
The rate cut is expected to restore confidence to businesses and consumers, coming at a critical time in world financial developments.