5/12/08 Homesgofast.com News London-Major European banks cut interest rates in a major attempt to stave off the effects of a worsening economic situation across the continent. The Swedish central bank and the Bank of England both cut their key interest rates to 2 percent, following on the heels of New Zealand’s cut in interest rates. The European Central Bank lowered its benchmark interest rate by three-quarters of a point to 2.5 percent, the largest reduction in the bank’s history.
The Swedish bank’s drop was to 2 percent, down 1.75 percentage points. The Bank of England cut its rates by a whole percentage point, also bringing it to 2 percent. That is the lowest level in over 50 years for England’s central bank, and it is expected to reduce that even further in the coming year. Rates in England have not been at this rate since 1951.Property for sale in Sweden
In other disappointing news from the UK, Halifax reported that house prices had fallen by 2.6 percent in November from October, which was the largest monthly drop since September of 1992. Car sales fell 37% in year over year sales. Economists are estimating that the UK’s GDP will contract by approximately 1% in the fourth quarter of 2008, on top of the .5% contraction in the third quarter.Property for sale in the UK
