Interest rate cut to 4.5 percent by the Bank of England says CBI

Bank of England should cut interest rate to 4.5 percent in November, according to the Confederation of British Industry, who are the nation’s number one business lobby.

Assuming that the inflation outlook doesn’t change, there is scope for a half point cut in November says the director of CBI, Richard Lambert. He also stated that we are in a mild recessionary stage.
Since April, the Bank of England has kept its main interest rate at 5 percent, worried that the fastest inflation in at least a decade will become fixed in the economy. After growth stopped in the second quarter, the European Commission said the U.K. has already begun its first recession since 1991.

The Bank of England today pledged that they would “take appropriate actions if necessary” to stabilize money market, after Lehman Brothers filed for bankruptcy and Merrill Lynch sold out to Bank of America, it grows fears of a further deterioration in the U.K’s financial service industry.

Read the full article in bloomberg