Bank cuts to 1%, economy in severe downturn

The Bank of England chopped 50 basis points off bank rate on Thursday and stepped up the rhetoric on the scale of the crisis, saying that the global economy was now "in the throes of a severe and synchronised downturn".

The cut, which leaves the bank rate at a fresh low of 1%, was widely expected owing to the pace of the deterioration of the British economy.

The Monetary Policy Committee (MPC) noted after the decision that output in advanced economies had plunged in the fourth quarter of last

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