The Bank of England today cut British interest rates for the third time in four months in a new effort to insulate the British economy from the slowdown in the US.
The bank's nine-member Monetary Policy Committee voted to shave another quarter-point off the cost of borrowing, taking it from 5.5% to 5.25% - its lowest level since October 1999.
The decision will be warmly welcomed by British industry and unions who have been calling for a rate cut in order to provide a much-needed injection of confidence at a time of global uncertainty.
Earlier this morning, industrial production figures had showed British manufacturing moving towards recession.
Figures last month also showed the British economy growing by a lower than expected 0.3% in the first quarter of 2001, the weakest rate in more than two years.
