Bank of England to follow Fed's lead

With the threat of global recession moving ever nearer, the Fed recently invigorated worldwide stock markets with an unexpected 50 basis point cut in interest rates. The Bank of England is expected to follow the Fed's lead. The MPC meets to set interest rates on May 10 and the City already has a 25bp cut factored into forecasts. What has happened in the UK and markets globally is a sharp and dramatic collapse in confidence. There has been little active buying of shares, and, fortunately, the markets did not witness panic selling. The key driver for the UK market is the strength...