Bank of England cuts base rate half a point

The Bank of England has surprised the market by cutting its base lending rate by half a point to 4.5 percent.

A rate cut had been expected, but Wednesday's action was a day earlier than scheduled and followed the government's action to partly nationalize major banks. Prime Minister Gordon Brown has told the House of Commons the rate cut was part of a coordinated action around the world.

The Bank of England says the Bank of Canada, the European Central Bank, the Federal Reserve, Sveriges Riksbank, and the Swiss National Bank all announced the reductions. The Bank of Japan is also expressing its strong support of these policy actions.

Brown says an important message is being sent "we will do everything in our power" to ensure our economy moves forward.

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