Thursday February 5, 12:12 PM
Bank of England cuts rates to new record low 1.0%
LONDON (AFP) - The Bank (NASDAQ: TBHS - news) of England said Thursday it had slashed its key lending rate by half a percentage point to an historic low of 1.0 percent, as it battles falling inflation amid recession in Britain.
The BoE said in a statement that its monetary policy committee "judged that there remained a substantial risk of undershooting the 2.0 CPI (Consumer Prices Index) inflation target in the medium term at the existing level of Bank Rate."
"Accordingly, the committee concluded that a further reduction in Bank Rate of 0.5 percentage points to 1.0 percent was warranted this month."
The decision, which was in line with expectations, came shortly before the European Central Bank was forecast to hold eurozone borrowing costs at 2.0 percent before a likely rate cut in March.
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