[CarlosFerreira]

The Bank of England has cut interest rates in the UK by one-and-a-half percentage points to 3%, its lowest since 1955, in a shock move.
Last month it cut rates from 5% to 4.5% in an emergency move co-ordinated with other central banks.
There had been widespread calls from industry for a major cut as the country begins to face up to the prospect of a deep recession.
It is the most dramatic cut since a two percentage point reduction in 1981.

Brutal, and leaves some wondering whether it will be enough. Easy money has created all the mess, and they're trying to cure it with easier money.

Is this a necessity to fight deflation? Or is there some attempt to create a further bubble?


BBC

Also... further prediction on ECB and Fed moves?

[Sys1]

Is this a necessity to fight deflation? Or is there some attempt to create a further bubble?

The purpose is clear. They want to earn money by creating a brand new bubble around oil. Time to take the train my friends, IEA said 100$ oil back again in notime.

[patience]

I can't see much inflationary/bubble threat for a while yet, with so much credit contraction. Not saying it won't happen when the low interest bailout stuff comes home to roost. But at the moment, they look to be trying to slow the credit contraction.

[CarlosFerreira]

The ECB, clearly enough, has cut theirs by a large chunk as well:

The European Central Bank has lowered its eurozone interest rates to 3.25% in an attempt to prevent a recession.
The bank has reduced rates by half a percentage point from 3.75% amid increasing signs of slowing growth.

BBC