Six Central Banks Including BoE Cut Rates In Unison
Six central banks - including the Bank of England - have cut their interest rates by half a percentage point. The UK rate move - which had not been expected until Thursday - puts the interest rate at 4.5% from 5%.
The US Federal Reserve has cut rates from 2% to 1.5% and the European Central Bank (ECB) trimmed its rate from 4.25% to 3.75%.
The unprecedented step is aimed at steadying a faltering global economy and slumping stock markets. The central banks of Canada and Sweden and Switzerland all took similar action in the co-ordinated move.
China also cut its rate, but by 0.27 percentage points.
European financial markets reacted well, pulling back some of the losses seen earlier on Wednesday.
The last time the Bank of England cut rates in a special meeting was on 18 September 2001 - when rates came down from 5% to 4.75%.
The US Federal Reserve has cut rates from 2% to 1.5% and the European Central Bank (ECB) trimmed its rate from 4.25% to 3.75%.
The unprecedented step is aimed at steadying a faltering global economy and slumping stock markets. The central banks of Canada and Sweden and Switzerland all took similar action in the co-ordinated move.
China also cut its rate, but by 0.27 percentage points.
European financial markets reacted well, pulling back some of the losses seen earlier on Wednesday.
The last time the Bank of England cut rates in a special meeting was on 18 September 2001 - when rates came down from 5% to 4.75%.
