Bank of England makes first rate cut in 2yrs

The Bank of England on Thursday cut its main interest rate by 25 basis points to 4.5% in response to the sharp slowdown in the UK economy, which grew at its lowest annual growth rate for 12 years in the second quarter.

According to a report on the website of Financial Times, the cut, which had been widely expected, marked the first change in the cost of borrowing since August last year when the Bank completed a series of rate hikes aimed at cooling down the then buoyant housing market and consumer boom. The last cut in rates was in July 2003.