LONDON, Jan 8 (Reuters) - The Bank of England cut interest
rates by half a percentage point to a record low of 1.5 percent
on Thursday as it battles to keep Britain from falling into a
deep and lasting downturn.
Financial markets had been almost evenly split in pricing in
a cut of either 50 or 75 basis points and analysts say another
reduction next month looks a sure bet and that interest rates
could fall below 1 percent.
Rates never fell below 2 percent, even during the Great
Depression of the 1930s, and they are now at their lowest level
since the central bank was founded more than 300 years ago.
The severity of the current downturn has caught policymakers
on the hop. They have cut UK interest rates by a total of 3.5
percentage points since October.
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