Interest Rates at 57-Year Low

Daily PostDecember 05, 2008

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Summary


INTEREST rates stood at their lowest level since 1951 last night after the Bank of England took more drastic action to prop up the UK economy.

In the wake of last month's shock 1.5% reduction, the Bank cut another 1% from its base rate. It warned that with demand now so weak there was a substantial risk that inflation will undershoot its 2% target.

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Interest Rates at 57-Year Low

The dramatic percentage point cut left the cost of borrowing at 2% -...

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