The Bank of England unexpectedly reduced its benchmark rate by 1.5 percentage points, its biggest rate reduction in more than a decade, and the European Central Bank lowered its interest rate as expected by half a percentage point to 3.25 percent.
The Bank of England cut was to 3 percent, the lowest level since 1954, surprising investors and economists who had predicted a cut of half a percentage point.Both banks cut their rates by a half percentage point on Oct. 8 in a coordinated response with other central banks around the world as they tried to loosen credit markets.