Global rate cut-an unexpected bonus

Have been busy during the morning so have just picked up the welcome news that interest rates have been cut 0.5% in a coordinated move across the big central banks.

Along with the Federal reserve and the European central bank,this coordinated move is intended to show that the world can globally work together during this crisis,a premise that has not always seemed possible in the last few days.

Rates in the UK are now at 4.55 and the bank will hope that these are quickly passed onto borrowers in the form of lower mortgage repayments.

The action comes on the same day that the IMF has forecast that the world economy is heading into recession.According to BBC online

the IMF said global economic growth would slow to 3.9% this year and then to just 3% in 2009 - its lowest level since 2002.
The IMF said the global financial crisis, which started with the collapse in US sub-prime mortgages in August 2007, had worsened in the past six months - and had entered a "tumultuous new phase" in September.