MW: Bank of England slashes key rate to 3% from 4.5%
By William L. Watts
LONDON (MarketWatch) -- The Bank of England slashed its key rate to 3% from 4.5% Thursday, in an unexpectedly large move. Markets had largely factored in a cut as large as 75 basis points, while most economists had expected half-point cut. The move by the bank's nine-member rate-setting Monetary Policy Committee follows a decision last month to join in a global round of rate cuts by major central banks. That decision saw the bank rate decline by 50 basis points, or half a percentage point, to 4.5%.
