Bank of England cuts key interest rates by 25 bps

The Bank of England has cut its benchmark rates for the first time in 2 years. A severe credit crunch and falling home prices seem to have forced Governor Mervyn King to reduce rates by 25 basis points to 5.5% reports CNBC-TV18.

This cut came despite concerns on the inflation front, that king had voiced just last week. Meanwhile, the Bank of England is also injecting 10 billion pounds via an auction to provide additional liquidity to banks.

Source : MoneyControl