The Bank of England has cut interest rates to 1.5%, the lowest level in its 315-year history, as it continues efforts to aid an economic recovery. The half percentage point reduction brings interest rates below 2% for the first time since the Bank of England was founded in 1694. Manufacturers' association EEF said the move was "too timid", and that the Bank should have cut rates further. The Bank has now reduced rates four times from October's 5% level. Explaining its decision, the Bank said the level of contraction in business activity had "increased during the fourth quarter of 2008, and that output is likely to continue to fall sharply during the first part of this year". It added: "Surveys of retailers and reports from the Bank's regional agents imply that consumer spending has weakened."
The half percentage point reduction brings interest rates below 2% for the first time since the Bank of England was founded in 1694.
Manufacturers' association EEF said the move was "too timid", and that the Bank should have cut rates further.
The Bank has now reduced rates four times from October's 5% level.
Explaining its decision, the Bank said the level of contraction in business activity had "increased during the fourth quarter of 2008, and that output is likely to continue to fall sharply during the first part of this year".
It added: "Surveys of retailers and reports from the Bank's regional agents imply that consumer spending has weakened."
WHEEEEEEEEEEEEEEEEEEEEEEE!!
[Drew's WHEEEEE™ Technology] Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
"Surveys of retailers and reports from the Bank's regional agents imply that consumer spending has weakened."
And I'll bet they said it with a straight face. A wonderful example of what is known in the British idiom as "abducting the urine". The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
We have been getting calls from big name mail order houses (Lands End, for example) asking whether we were happy with our recent purchase. This has never happened in the past...
People are beginning to suspect that, whatever the macroeconomic ills, there will be no improvement whilst people are making autonomous microeconomic decisions due to their personal circumstances. And the govt hasn't even begun to imagine doing anything about that. keep to the Fen Causeway
