BoE under pressure to cut rates

The Bank of England could cut borrowing costs by as much as half a percentage point next week, analysts said after further grim economic news Thursday _ particularly in the housing market _ stoked fears that Britain may suffer a deeper than anticipated recession.

If it were to cut its base rate from 5.00 percent to 4.50 percent, it would echo a similar move in October 1987 in the aftermath of the Black Monday stock market crash and represent the first half-point reduction since November 2001.

"Given the dramatic slowdowns being seen in UK manufacturing and the housing market as well as the fact that oil prices have slid back below US$100 a barrel, we …