Surprise cut in UK interest rates

UK - The Bank of England's Monetary Policy Committee (MPC) has cut interest rates by 0.25%.

The Bank's base rate is now down to 5% - with mortgage rates also set to nudge a step lower.

The cut is the fourth this year and follows pressure from Britain's manufacturers, who have been hit by a slowdown in the world economy.

It is also good news for homeowners who will see a reduction in their mortgage payments. It is not such good news for savers who will the returns on their money decline.

It will