Bank Interest Rates drop to 4.5%

The Bank of England has cut interest Rates by 0.50% to 4.50%. The decision has been made a day before the BoE's Monetary Policy Committee normally makes its decision over the interest rate.

In an unprecedented and co-ordinated step, amid slumping world stock markets came the US Federal Reserve cut interest rates from 2% to 1.5% and the European Central Bank (ECB) trimmed its rate from 4.25% to 3.75% along  with the central banks of Canada and Sweden and Switzerland all took similar action in the co-ordinated move.