bank of england cut interest rate

The Bank of England’s rate-setting committee has cut interest rates to 5.25% from 5.5% amid signs that the UK economy is slowing down. Analysts had widely predicted the move, which followed recent cuts in the US, where the Federal Reserve has slashed its borrowing costs to 3% from 4.25%. However, the Bank of England signalled it was unlikely to be as aggressive because of fears over rising prices. The Bank said it needed to ensure that growth and inflation were balanced.