Britain Reduces Key Interest Rate
The Bank of England on Wednesday cut its money market dealing rate to 10.5% from 11%, a signal to commercial banks to cut base lending rates to that level.
Many quickly did so.
Chancellor of the Exchequer Norman Lamont, Britain’ finance minister, said the rate cut would “consolidate the very marked improvement in confidence we’ve seen in recent weeks.”
Britain’s economy has been deep in recession following a spike in interest rates to 15% in 1989.