London (Shakespeare Finance) October 20, 2009:

After following the weeks of speculation, finally the citizens of UK got to hear the good news on Wednesday. Yes, the chief finance governing body of UK, the bank of England has finally consented to the reduction in rate.

The move which was effected by the chief finance institution of the England here on Wednesday, was done in a bid to recover from the impact left by the financial meltdown on one of the strongest economy of the world.

Incidentally, this rate cut of 4.5 percent is quite a remarkable move on behalf of the BoE considering the fact that this time they have went against the set pattern and made the necessary amendments in rate structure.

Interestingly, this much-awaited move which looked a definite phenomenon, once Brown headed government issued a statement few days back which said that the government would inject a fresh dose of capital to revive the dying banking institutions. This statement from the UK government came only after many of the eminent names in the banking sector of UK fell prey to this global liquidity crunch.

However, it is left to be seen whether this move will have the desired effect on the present economic conditions as even after the introduction of this move, the BoE expects the inflation to be some where around 5 percent mark for the coming months, twice more then the target set by the government of UK.

At this point of time, leading economists of the country are not ruling out the possibilities of another rate cut or probably a series of rate cuts. Since, chances are quite high that coming time might see another slowdown phase.