BOE, ECB Slash Interest Rates

Updated from 7:23 a.m. EST

The Bank of England cut its lending rate one-and-a-half percentage points to 3% from 4.5% Thursday, a reduction that was much greater than forecasts, and the European Central Bank followed suit lowering its benchmark rate by half a percentage point.

The European Central Bank cut its main lending rate to 3.25% from 3.75%.

Most analysts expected the BOE to slash rates by half a percentage point as Great Britain looks poised to enter a recession and as inflation has been falling. ...