Rates cut bid to boost confidence
Updated on 08 October 2008
In concert with other central banks around the world, the UK government cuts interest rates by 0.5 per cent, to 4.5 per cent.
The cut, the biggest since the 9/11 attacks, is meant to restore confidence in the British economy, alongside the package to kick-start bank lending.
Money for the package will come from the taxpayer, in what amounts to the part-nationalisation of institutions taking part.
So far, seven banks and one building society have signed up to the scheme, but others are also eligible.
