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Britain Cuts Interest Rates - 2001-09-18

Britain's central bank has cut interest rates to their lowest level in nearly 40 years. The Bank of England announced the move Tuesday, following similar cuts in the United States, Europe, and Japan.

The Bank of England cut its key lending rate by 0.25 percent.

It said it took the step because the outlook for global economic activity has weakened in the aftermath of last week's terrorist attacks in the United States.

British interest rates are now at 4.75 percent, the lowest they have been since 1964.

Japan earlier Thursday cut its discount rate to 0.1 percent. It had been set at 0.25 percent.

The cuts had been expected following a 0.5 percent cut in U.S. interest rates Monday.

Central bankers around the world are hoping the rate cuts will keep the global economy from slipping into recession.