Bank slashes rates to 3%
The Bank of England slashed its key rate by 1.5% to 3%. The ECB cut rates by half a point to 3.25%. Those move show the current difficulties of the moment and as The bank of England cited “marked deterioration in the outlook for economic activity at home”. They intend to encourage borrowers with rates which haven’t been that low since half a century (1955). Economists were predicting a decrease of 1% and where surprised by the decision and acknowledge the intention of the BOE to fight the current crisis.