The Bank Of England has announced a half percent cut in interest rates as an emergency measure thrashed out with the World’s bankers throughout last night. The Federal Reserve, European Central Bank, Swiss, Canadian, Swedish and Chinese Central banks all announced similar cuts at the same time.
The cut was made only hours after the British Government announced it’s £500billion financial package to inject confidence into the UK banking system. That deal was disclosed in a press conference this morning where both the Prime Minister and the Chancellor were quick to point out the strategic differences between the US bail out plan and this UK plan.
Gordon Brown made it clear that his government was acting on behalf of the electorate when he said “All these are investments being made by the Government, which will earn a proper return for the taxpayer.”
“Remember, this is not the American plan. The American plan is to buy up the state assets by state funds. The £50 billion is to buy shares and therefore we will have a stake in the banks and we will get the upside in the appropriate cases from what we have done.”
At long last Alistair Darling realised that without action from the government the problem would not go away, when he added “Look at it another way, If you didn’t do anything there would be a very significant cost to all of us taxpayers.”
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