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UK interest rates cut to 3%
The Bank of England has dramatically cut interest rates by one-and-a-half percentage points to 3 per cent, the lowest since 1955.
Reacting to today's (Thursday) 1.5 percentage point interest rate cut, the British Retail Consortium said it i s the kind of shock tactic the economy needs. British Retail Consortium Director General Stephen Robertson said: "This is the kind of shock tactic that could get the economy's heart beating again. A more modest cut was widely expected and already largely factored in."The Bank has rightly decided bold and decisive action now will have more impact than a staggered downward journey. "A cut on this scale puts the banks under more pressure to pass the benefits on to borrowers. Base rate reductions can't achieve much if they don't help household finances. It should also breathe life into lending between banks. "This dramatic cut for Christmas could give customers the confidence to spend at what is many retailers' most important time of the year."
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