Bank of England cuts rates
LONDON, England (AP) The Bank of England has cut its base lending rate a quarter-point to 5 percent, the lowest rate in 17 months.
But a number of analysts still say that further rate cuts are needed.
The widely expected decision comes in the face of contrary pressures from rising inflation, sagging house prices and falling consumer confidence.
The bank’s key rate hit its recent peak of 5.75 percent in July and stayed there until December. The last time the rate was as low as 5 percent was November 2006.
The Bank of England’s head of markets, Paul Tucker, last week said rates would fall “gradually” and that the central bank was prepared to tolerate increased slack in the economy to counterbalance inflationary pressures.
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