Europe and the UK are still playing catchup to the US, which got to 0% interest rates first. It looks like it’s only a matter of time before the rest of the world gets there. Today the BoE cut another 50bps
Bloomberg: The Monetary Policy Committee, led by Governor Mervyn King, trimmed the bank rate by a half point to 1.5 per cent. The result matched the median forecast of 60 economists in a Bloomberg News survey. The pound rose against the euro and the dollar.
“The availability of credit to both households and businesses has tightened further, pointing to the need for further measures to increase the flow of lending to the non- financial sector,” the Bank of England said in a statement. “Output is likely to continue to fall sharply during the first part of this year.”