Bank of England cuts interest rates

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The Bank of England has cut the rate of interest to 4.75 per cent, in line with cuts made in America, Europe and Japan following the terrorist attack on the US.

The bank made the decision despite worries that it could increase inflationary pressures which have already seen the rate of inflation jump to 4.6 per cent.

The move was more cautious than expected, with many experts predicting a cut of 0.5 per cent, and failed to make any immediate impact on London shares.