Bank of England trims UK rates

NEWS

LONDON -- The Bank of England's Monetary Policy Committee last week cut UK interest rates by 25 basis points amid plummeting equity markets and more downbeat economic assessments.

UK rates now stand at 5.5%, and following the 150 basis point cuts in US rates this year, the UK now has the highest borrowing costs of the G7 nations. The cost of borrowing is now at its closest to convergence with the eurozone, where rates currently stand at 4.75%, since the euro was introduced in 1999.

The Bank ci