Bank of England as expected cuts key rate to 5.25% (MarketWatch) (07-02-2008)

LONDON (MarketWatch) -- The Bank of England has announced it cuts its key lending rate by a quarter point to 5.25%, in response to signs of a slowing economy.

The decision by the central bank's Monetary Policy Committee was widely anticipated. The outlook for future cuts is clouded by concerns about inflationary pressures, as consumer inflation continues to remain at an annual pace of 2.1% in December, above the BOE's 2% target.

Recent data has pointed to a slowdown in the manufacturing sector, with data on Thursday showing a 0.2% monthly decline in December manufacturing output and a 0.1% fall in industrial production.

Source: MarketWatch