BoE cuts UK rates by quarter pct point to 5.0%

The Bank of England cut interest rates by a quarter-percentage point for the third time in five months in an attempt to cushion the economy from the global credit squeeze.
The cut to 5.0 percent had been widely expected following data pointing to a downturn in the housing market, falling consumer confidence and a slowing economy. Credit market turmoil has made banks reluctant to lend, meaning little, if any, of the previous two rate cuts since December has been passed on to consumers and businesses.
Mortgage rates for many borrowers have actually risen and the central bank's credit conditions survey last week warned that the situation could get worse.
Nevertheless, policymakers are also concerned about price pressures. Inflation has been above the 2 percent target since October and is likely to rise further as higher food and commodity prices work their way through the system.
UK's Nationwide raises mortgage rates again
Nationwide, Britain's second-largest mortgage lender is set to increase its fixed lending rates for new customers for the second time in two weeks, as it faces rising costs and heightened demand.
Nationwide said it will raise the cost of its fixed-rate deals, passing on increases of between 12 and 32 basis points. The move follows a 20 basis point rise across its product range at the end of March.
The building society said its base mortgage rate would drop in line with the Bank of England's 25 basis point interest rate cut on Thursday, offering some relief to British borrowers.
Thousands of mortgage products have been withdrawn across the industry in recent months, as UK banks cut back amid a rise in funding costs and a housing market slowdown.