ECB & Bank of England cut rates
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The ECB and Bank of England both cut rates this week in response to the deterioration of demand and consumer confidence in the European economy.
The 16 country ECB cut rates by 0.50% to 1.50% while the Bank of England took the unprecedented step of of slashing rates in half to a record low of 0.50%.
The future of the European and UK economies are on a knife edge as consumers are failing to spend instead hoarding available cash with expectations the markets will further deteriorate. This logic however is the worst option as consumers will need to lead the economy out of this malaise.
With the banking system in tatters and nationalism of UK banks on the government agenda, the Euro zone as a long way to go till they can pick themselves up from this crisis.
Bank of England rates now 1.5%
The Bank of England cut rates by 50 basis points to 1.5% in what is becoming the worst economic slowdown since the Great Depression of the 1930s.
The UK has been harder hit than most amid a dramatic slowdown in consumer spending, negative economic growth and falling housing prices.
Bank of England & ECB slash rates
The Bank of England and the European Central Bank (ECB) have slashed rates to respond to faltering global demand as the world economy balances of the edge of the abyss.
The Bank of England cut rates to 1.5% down from 0.50%, the lowest rate in 314 years in an attempt to stop the economy from contracting. The English economy is in a dire position as the economy is set for it’s worst year since 1946 as the economy continues to contract at a record pace.
Meanwhile the ECB cut rates to 2% down from 2.50% as the economy continues to struggle and indicated more cuts could be on the way in an attempt to stimulate economic demand.