Old Lady cuts rates to 5.5%

The Bank of England's rate-setting Monetary Policy Committee (MPC) voted on Thursday to cut its benchmark bank rate by 25 basis points after data suggested the UK economy was weakening.

The Bank said: "Although output in the United Kingdom has expanded at a brisk pace for the past two years, there are now signs that growth has begun to slow."

The recent turmoil in financial markets threatened to filter through to the real economy, the Bank said: "Conditions in financial markets have deteriorat