International Economic News Updates

[sbmenon]

The Bank of England surprised markets with a sweeping one-and-a-half percentage point interest-rate cut Thursday, as central banks in Europe slashed their key rates to stave off deep and prolonged recessions.

The Bank of England cut its key lending rate to 3% from 4.5%, signaling deep concern as the British economy struggles with falling house prices and sharply tighter credit conditions.

The European Central Bank, which makes monetary policy for the 15 countries that share the euro currency, cut its key rate by half a percentage point to 3.25%, as expected. Switzerland's central bank joined in, cutting its key rate target by half a percentage point to 2% in an unusual between-meeting move.