Forex News: Bank of England Interest Rate Cut to 5.25%
The Bank of England had cut the UK interest rates again with a drop from 5.5 % to 5.25% after worries that the economy may be on a go slow. The interest rate cut is no surprise to leading economic analysts who had predicted is for some weeks. Ths UK interest rate cut comes after the US Federal Reserve cut borrowing costs down from 4.25% to a mere 3%.
The fear of rising prices meant that the Bank of England were not quite as strong in their move and they wanted to make sure that inflation and growth maintained a healthy balance.