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Bank of England Reduces Bank Rate by 0.5%

November 2008

The Bank of England reduced the bank rate by 0.5% to 4.5% with effect from 8 October 2008.

John Cridland, CBI Deputy Director-General, said:

“This was an essential and timely rate cut which the CBI had called for to help restore business and consumer confidence.

We have now seen major steps by both the Government and the Bank of England to support the economy and the financial system. These will be welcomed by business, and will help the economy at a critical time.

We also applaud the coordinated interest rate cuts by key central banks, which will benefit the global economy and stabilise financial markets.”

Please do contact us if you have concerns.

Internet links: Bank of England news release and CBI news release