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BOE slashes rate to '55 level

China Daily | Updated: 2008-11-07 07:59

The Bank of England unexpectedly cut the benchmark interest rate by 1.5 percentage points to the lowest since 1955 as policy-makers tried to limit damage caused by the worst banking crisis in almost a century.

The nine-member Monetary Policy Committee, led by Governor Mervyn King, reduced the bank rate to 3 percent, the biggest decline in more than a decade. None of the 60 economists surveyed by Bloomberg News predicted the move.

"It's absolutely staggering and deeply impressive," said Brian Hilliard, director of economic research at Societe Generale in London. "They are clearly grasping the nettle and taking deep action. Boy, this is going to have an impact."

BOE slashes rate to '55 level

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