Filed under: International markets, Economic data, Recession

In a widely expected move, the Bank of England lowered a key short-term interest rate by one-quarter point to 5.25%, the bank announced, in a statement.

“The prospects for output growth abroad have deteriorated and the disruption to global financial markets has continued,” the BOE said.

The BOE added that credit conditions for households and businesses were tightening and that growth in consumer spending had eased. In addition, the bank said various business surveys indicated that further economic slowing is likely.

The pound fell substantially versus the dollar on the news. The pound fell about 1.6 cents to $1.9455 in heavy trading Thursday at mid-day.

Continue reading Bank of England cuts benchmark interest rate by a quarter point

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This entry was posted on Thursday, February 7th, 2008 at 9:14 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.