UK rates cut another 0.5%

The Bank of England has cut the cash rate to just 1.5% as its economy faces an ever worsening situation.

In a statement released overnight ratifying the decision to drop rates, the Bank of England said the world economy was undergoing “an unusually sharp and synchronised downturn” and the outlook for the United Kingdom continued to deteriorate.

“Business surveys suggest that the pace of contraction in activity increased during the fourth quarter of 2008 and that output is likely to continue to fall sharply during the first part of the year.”

UK rates have now fallen by 4.25% in just over 12 months, with three per cent of that fall occurring in the past four months alone.