Insights from the UK and beyond
Was one point enough?
This week, the all-important services sector (which makes up three quarters of economic output) recorded its weakest headline index since 1996 and seventh straight month of contraction. Together with dismal news on unemployment and inflation, these surveys confirm that recession is spiralling as we reach the close of 2008.
So was the rate cut enough?
The consensus among economists polled by Reuters was indeed for a full point drop, bringing the base rate to the lowest in more than half a century after the big 1-1/2 point cut last month.
But several economists had pushed for a 1-1/2 point cut and some even thought the economic situation is dire enough to warrant zero percent.
Do you think the Bank should have been bolder?
(Please note this is an updated version of an earlier Have Your Say which asked readers how big a rate cut they thought the Bank of England should make. The announcement was made at mid-day GMT)