The Bank of England cuts interest rates to 1.5%, an all-time low
THE decision made history. On Thursday January 8th the Bank of England cut the base rate from 2% to 1.5%, the lowest since the central bank was founded in 1694. The Bank of England’s mission then was to provide war finance. Its task now is to fight a recession that looks increasingly likely to be the worst since the second world war.
The bank’s latest move means that the base rate has now fallen by an extraordinary 3.5 percentage points since the start of October (see chart). It followed a clutch of closely watched business surveys of purchasing managers that painted a dismal picture of the economy in December. Manufacturing was mired in the deepest downturn since the survey started in 1992. Construction activity plumbed new depths. And activity in private services stayed close to its record low in November. ...
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[Source: The Economist: News analysis - Posted by FreeAutoBlogger]
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