Interest Rate Slashed to 3%

The Bank of England's Monetary Policy Committee has slashed the UK Interest Rate by 1.5%

Interest Rate Slashed to 3%

The Bank of England’s Monetary Policy Committee has slashed the UK Interest Rate by 1.5%, a rate far greater than was widely anticipated by economists. A rate cut was expected after recent reports that the UK has been sliding into recession. The last rate of 4.5% had been achieved after a surprise 0.5% cut in interest rates on the 8th October, a day earlier than expected so that it coincided with the banking sector bailout plans announced across Europe. Many predictions for today’s cut were of at least 0.5% with some sectors pushing for a whole 1.0% rate cut to boost the flagging economy, particularly after yesterday’s news of a 20% fall in new car sales in the UK. Inflationary pressures are thought to be no longer so much of a factor after the price of a barrel of oil fe... »