MPC cuts rates to 5.5%

The Bank of England has reduced interest rates to 5.5% in a bid to ease conditions in an environment ...

The Bank of England has reduced interest rates to 5.5% in a bid to ease conditions in an environment of slowing global growth and volatile financial markets. The base rate was reduced by 25 basis points from 5.75%. The MPC said that although the UK has expanded at a brisk pace for the past two years, there are now signs of a slowdown as consumer spending is forecast to moderate. “Conditions in financial markets have deteriorated and a tightening in the supply of credit to households and businesses is in train, posing downside risks to the outlook for both output and inflation further a...