Bank cuts rates by quarter point

The Bank of England cut interest rates by a quarter point last week to 5.25%. The cut was widely expected because of continuing fears of a fall in economic growth and the sharp rate cuts of 125 basis points by America’s Federal Reserve. The Bank says the relatively modest size of the cut was determined by the continuing need to balance the slowdown of the economy with inflationary pressures. Meanwhile, the European Central Bank left its key interest rate steady at 4% last week.