Bank of England's MPC cuts base rate to 48-year low

Mervyn King and the Bank of England's Monetary Policy Committee has bowed to pressure and cut the UK base repo rate to its lowest level in 48 years by shaving 0.25% to 3.5%. A statement issued at 12pm by King - presenting his first base rate cut as Governor of the Bank of England - says the reduction was necessary because the global economic recovery is still "hesitant" and the prospect of the UK economy improving is not as good as previously anticipated. In particular, the committee felt a further cut to 3.5% was needed to try and keep inflation "on track". Indicators sugges...