Bank Acts To Cut The Cost Of Borrowing
The Bank of England's policymakers have, as expected, cut interest rates - to the relief of millions of homeowners and thousands of businesses.
Members of its Monetary Policy Committee have trimmed the cost of borrowing by 0.25% to 5.25%.
This is less than the 0.5% reduction companies, especially retailers, had been calling for.
However, analysts point out the nine-strong committee fought shy of such a big cut because they are wary of stoking inflation.
Shoppers have been shunning the High Streets - they have had less money to spend in recent times because of the credit crunch and consequent squeeze on household incomes.
Homeowners, who have seen their mortgages shoot up, have also been calling for help.
And hard-pressed companies have been demanding measures to give them relief and make them more competitive with their overseas rivals.
Therefore the BoE has tried to balance giving them more spare cash and boosting the economy against doing anything to push up prices again.
Last month The MPC voted 8-1 to keep interest rates on hold, warning that the risk of inflation had "worsened markedly".
Governor Mervyn King had already signalled that the UK would not follow America's lead with dramatic rate cuts.
The base rate there has been slashed by a total of 1.25% in recent days, to stand now at just 3%.
Away from all the razzmatazz of the US Primaries, the US economy teeters on recession.
If the world's largest economy does grind to a halt Britain is bound to be affected.
The sub-prime crisis was also born in the US but the credit crunch that it spawned has made its way here. The banks have got the jitters.
The credit crunch may not be as acute as it was before Christmas but the sense is an era of cheap borrowing has come to an end.
