Headline Economy

Bank cuts rates to 2%
The Bank of England has knocked 100 basis points off the base rate of interest to leave it at two per cent - the joint-lowest point in its history.

Speculation that the Bank would make such a move had been rife after a run of gloomy economic data that suggest the UK is facing a prolonged and severe recession. Read full story

Other Headline Economy stories

-	"Rapid" deterioration could prompt slash in rates . The "rapid deterioration" in business conditions experienced since November's interest rate cut could prompt the Bank of England's monetary policy committee (MPC) to once again slash rates later today (December 4th). 4th December 2008 9:40
-	Consumer confidence falls again. Consumer confidence fell again in November as economic worries continued to weigh heavy on Britons' minds, according to the latest figures from Nationwide. 3rd December 2008 11:25
-	Jobs market collapsing at "breakneck speed" . Analysts have warned that the UK jobs market is "heading downhill at breakneck speed" after the number of permanent and temporary appointments dropped at the fastest rate on record in November. 3rd December 2008 10:05
-	Sterling limps against dollar after 'biggest fall since Black Wednesday'. The pound has "struggled to remain steady" against the dollar today (December 2nd) as it tries to recover from the biggest percentage drop in its value since 1992's Black Wednesday, when the currency was forced out of the Exchange Rate Mechanism, it has been reported. 2nd December 2008 15:33
-	HSBC, Credit Suisse axe jobs as London Scottish collapses . The economic downturn delivered another battering to the UK's financial services sector yesterday (December 1st), with HSBC and Credit Suisse announcing major cutbacks and the London Scottish Bank collapsing into administration. 2nd December 2008 15:05
-	UK manufacturing shrinks at "unprecedented" rate . A collapse in new manufacturing orders led to the sector shrinking at the fastest pace on record last month, according to new figures from Markit and the Chartered Institute of Purchasing and Supply. 1st December 2008 15:49
-	BCC calls for "aggressive" interest rates cut . The Bank of England's monetary policy committee (MPC) should aggressively slash interest rates when it meets later this week in order to overcome the "disappointing" response to the pre-Budget report, the British Chambers of Commerce (BCC) has said. 1st December 2008 15:48
-	UK officials mulling euro membership, Barroso claims. The head of the European Commission has said British officials are "closer than ever before" to supporting the country's membership of the euro, it has been reported. 1st December 2008 12:47
-	Economists predict rate cut . Economic experts are predicting that the Bank of England's monetary policy committee (MPC) will cut interest rates again when they meet next week. 28th November 2008 14:37
-	Consumer confidence "treads water" in November. Consumer confidence "improved marginally" this month but levels of assurance about personal finances and the wider economic outlook remain near record lows, pollster GfK NOP has said. 28th November 2008 10:01