The Bank of England cut the interest rate by 0.5% to 4.50% even though inflation remains above target. The decision was due tomorrow.
At the exact same time, the Federal Reserve, European Central Bank and Swiss, Canadian, Swedish and Chinese central banks all announced similar cuts.
In this shock move, central bankers around the world took emergency action to end the market meltdown and hope the co-ordinated interest rate cuts will ease the credit crunch and lift the global economy.
It’s some encouraging news but the question is, will it work?