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The Bank of England made an emergency half-point rate cut today, joining f ive other central banks in reducing borrowing costs in another attempt to restore global financial stability.
The Bank's Monetary Policy Committee (MPC) has cut the UK interest rate by half a point to 4.5 per cent, a day ahead of its monthly decision on borrowing costs.
In a co-ordinated move with the European Central Bank, the US Federal Reserve, and central banks in Canada, Sweden and Switzerland , the Bank of England said it was making a half-point cut to offset the downside risks posed to the economy by the "recent intensification of the financial crisis".
The move came just hours after the Treasury and Bank of England announced a £50 billion bailout package for banks and building societies.