Financial Times FT.com

Sterling advances after rate cut

By Peter Garnham

Published: February 5 2009 10:56 | Last updated: February 5 2009 18:33

Sterling hit a two-month high against the euro on Thursday as investors welcomed the Bank of England’s decision to cut UK interest rates to a record low.

The Bank, as expected by most forecasters, lowered UK interest rates by 50 basis points to 1 per cent after its policy meeting, warning that the global economy was in the throes of a severe and synchronised downturn.

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