Financial Times FT.com

Rates move prompts scepticism

By Jonathan Guthrie

Published: November 7 2008 01:02 | Last updated: November 7 2008 01:02

Few gift horses have had their teeth examined as incredulously as Thursday’s surprise 1.5 percentage point base rate cut.

Businesses and the organisations that represent them were sceptical that banks would pass on the reduction to struggling companies. The scale of the cut, meanwhile, provoked fears that the economy was in far worse shape than anyone outside the marbled halls of the Bank of England had realised.

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