World

BoE Slashes Intrest Rate to All Time Low To 1.5%

by Amitjha | January 8, 2009 at 04:06 am

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Liquidity drought is gripping the world, and Central Bank from all over the world is trying to rain money in this drought. In the latest move BoE, slashed it interest rate to all time low to 1.5%. How this move is going to respite the people at large no body knows, because already dried market soaks all the extra money.

The Bank of England has cut interest rates to 1.5%, the lowest level in its 315-year history, as it continues efforts to aid an economic recovery.

The half percentage point reduction brings interest rates below 2% for the first time since the Bank of England was founded in 1694.

Manufacturers' association EEF said the move was "too timid", and that the Bank should have cut rates further.

The Bank has now reduced rates four times from October's 5% level.