English economy in a scrape as rates stoop down to unbelievable lows

London (Ask4paydayloan) Dec 19, 2008: Even slashing rate of interest again by a margin of 2 percent, last Thursday, has not turned the tables in the favour of English economy, says the Bank of England, the top-notch banking institution in the UK.

In an endeavour to prevent the situation from getting worse, the bank has said that slashing interest rates will not be all alone enough to revive the jinxed fate of the UK economy; something more concrete and with Olympian precision needs to be done immediately and with lot more urgency.

Understanding the sensitivity of the situation, Britain's Prime Minister, Gordon Brown, himself has stepped forward and has decided to take the control of the situation by talking with some of the banks which are being subjected to the bail-out package, to lower the lending rates. He also said that he would be taking radical steps to curtail the rocketing Libor (London Interbank Offered Rate) levels, which has played a major role as being a major constraining factor, disallowing the banks to offer lower rate of interest to customers. However, the main problem has been the nuclear option, i.e., rate cut which despite already being imposed twice, hasn't been able to bring the desired effect and its further use can turn the barrel of the gun on their own side. This has made the issues more complicated for the UK economists and financial experts. But certainly after seeing Gordon Brown stepping forward and taking the initiative has certainly infused a ray of hope in the hearts of the people.

Other Financial News:

The Government's Vengeance Over The UK Loan Lenders
Bank hints at further rate cuts