Further Cut of Interest Rate

January 8, 2009 by admin · Leave a Comment
Filed under: Business News

In order to deal with the soaring fears over UK’s rapidly worsening prospects following a deluge of dire economic news and a mounting toll of job losses, the Bank of England just ordered futher interest cut to 1.5% today. The move brings the interest rate down to the lowest point in 314 years.
The Bank warned in its statement that the pace of contraction in the gloom economy during the past quarter would prove more severe than the already steep 0.5% decline suffered in the previous quarter, and that “output is likely to continue to fall sharply during the first part of the year”.
In a bleak assessment, the Bank also highlighted signs that consumer spending was faltering, and a worsening outlook for business investment and housebuilding, and the continued lending drought facing both household and corporate borrowers.
Many economic analysts also have warned that the market condition will suffer its worst year since 1946 and further shrink during 2009.

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