Bank of England surprises with 0.25% rate cut

The Bank of England's Monetary Policy Committee surprised markets on Thursday with a quarter point interest rate cut to 3.75%.

In a short press release the Bank said the move was to keep inflation on track as some danger had existed that the inflation target would be missed.

The decision to reduce rates is likely to put further pressure on an already over heated housing market in the UK. The decision comes after the European Central Bank recently cut its key interest by 0.5% to stimulate the sl