The Bank of England is amongst seven central banks which have today cut their interest rates in an unprecedented move to try and steady the lurching global economy.
In the UK interest rates at have fallen to 4.5% from 5%; the move, although unexpected, had been thought to have been on the cards for Thursday.
The US Federal Reserve has cut rates from 2% to 1.5% and the European Central Bank trimmed its rate from 4.25% to 3.75%, while the central banks of Canada, China, Sweden and Switzerland all took similar action in the co-ordinated move.
The move comes after the UK Chancellor announced a £50bn rescue package for UK banks whereby taxpayers will have a stake in the banks, in return for their money, should the banks need it.
According to the BBC, the move does not mean that banking trade will return as normal, rather that this is a way of returning stability, some liquidity and a degree of confidence to the UK banking system.