10 April 2008 12:00 [Source: ICIS news]
LONDON (ICIS news)--UK interest rates were cut by a quarter percentage point to 5.00% by the Bank of England’s monetary policy committee (MPC) on Thursday as the pound hit record lows against the euro.
Most economists predicted the decision, which came against the backdrop of a deteriorating housing market and fears of deepening effects from the global credit crunch.
In March the Bank of England resisted cutting rates to stave off rising inflation, but evidence of a stronger housing downturn has fuelled the need to boost growth.
Latest figures show domestic house prices dropped by 2.5% during March, their biggest monthly fall since 1992.
The International Monetary Fund (IMF) warned the ?xml:namespace>
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