Having seeing the slump in the housing markets and banking sector in U.K, the Bank of England is worried that their economy may turn as the U.S ‘s economy and may go into deep recession. So they have taken the preventive measure and have cut the benchmark interest rates for the consecutive third time since last December. The Monetary policy committee lowered the bank rate by a quarter point to five percent. The Bank of England stated that the Credit conditions have tightened and the availability of credit appears to be worsening. Slower economic growth this year should help to keep domestic inflationary pressures in check. I feel that this interest-rate cut will definitely see a boom period in the U.K’s Economic structure.
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