BRITAIN CUTS INTEREST RATES

Britain cut interest rates by half a percentage point May 5 in a move to help the economy out of its longest business recession since the 1930s.

The Bank of England cut its money market dealing rate, encouraging commercial banks to follow suit and cut base lending rates to 10 percent from 10.5 percent.

The reduction was the first since September 1991 and brought British rates to their lowest for four years.

The move followed a general election victory for the ruling Conservative Party April 9, after which the pound sterling strengthened on foreign exchanges. Industrial unrest in Germany, where public-sector workers are on strike for higher pay, weakened the mark and helped pave the way for lower British rates.

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK