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Bank of England cuts rates

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The Bank of England has cut interest rates from 5% to 4.75%.

Today’s cut follows cuts by the US Federal Reserve and the European Central Bank yesterday following last week’s attacks in New York and Washington.

The Federal Reserve lowered its benchmark overnight bank lending rate by 0.5% to 3%, the third time this year the Fed has cut interest rates between scheduled meetings.

The European Central Bank cut its interest rate, also by a half-point, to 3.75%.

Today’s decision is the first time the Bank of England has changed rates outside of an official policy meeting since it was given control of monetary policy by the Government in 1997.

Commenting on the cut in interest rates, TUC General Secretary, John Monks, said, “There is now a real risk of world wide economic slow down. That is why this interest rate cut is absolutely vital. Co-ordination must now continue and the Bank and the Government must stand ready for further action.”

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