Business this week

Amid signs of a worsening British economy, the Bank of England slashed its benchmark interest rate by one-and-a-half percentage points to 3%, its lowest level since 1955. Earlier, Gordon Brown said he hoped banks would pass on interest-rate reductions to mortgage-holders. The European Central Bank reduced rates by half a point, to 3.25%. See article Interbank loan rates continued to fall, an indication that last month’s severe squeeze in the money markets has eased. The three-month dollar Libor dipped to its lowest level this year. Banks, however, remained reluctant to extend credit. The Federal Reserve, in its quarterly survey of loan officers, reported that financial firms have been sharply tightening their criteria for consumer and business lending ... (link)