THE GUARDIAN: The FTSE 100 share index suffered heavy losses again this today after hopes of hefty UK interest rate cuts were punctured by the latest news from the Bank of England.
With financial markets braced for more mayhem in the weeks ahead, London traders were still in selling mood after yesterday's turbulent session and hectic trading in Asia overnight. Although an emergency interest rate cut from the US Federal Reserve yesterday provided some early support, traders described it as little more than a stop-gap.
In a day of choppy trading, the mood darkened after it emerged at 9.30am that the Bank was not as divided over holding interest rates this month as the market had thought - with just one policymaker voting for a cut. At 1.30pm the FTSE 100 was down 3.5% at 5539.7 points, a 200.4 point loss, as it shed all of yesterday's gains.
There was disappointment that the latest minutes from the Bank of England's January rate-setting meeting showed it is unlikely to follow America's lead by making big reductions to borrowing costs in the UK. London stocks hit by rate fears >>> By Graeme Wearden and Katie Allen
THE GUARDIAN:
Market Turmoil
THE TELEGRAPH:
Ben Bernanke plays his ace - now what?
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