BoE: Well You Wanted Something Decisive, Cop This

In a shock move, the Bank of England has cut interest rates in the UK by one-and-a-half percentage points to 3%, the lowest since 1955.

There had been widespread calls from industry for a major cut as the country begins to face up to the prospect of a deep recession.

Few, however, had expected a cut as decisive as this.

It is the first time the Bank has cut rates by more than half a percentage point since gaining its independence in 1997.

The problem recently, however, has been getting British banks to pass on rate cuts to their borrowers.

Intriguingly, Lloyds TSB CEO Eric Daniels and bezzie mate of Gordon McBroon, has been quoted as saying that they will never charge borrowers more than 2% above Bank of England base rate. It's standard variable rate is currently 6.5%, will they deliver?

Further evidence that the UK is sinking into recession came with the news that in October UK new car registrations were down 23% on 2007.