The UK rate move - which had not been expected until Thursday and had been predicted at .25 per cent - puts interest rates at 4.5% from 5%.

The US Federal Reserve has cut rates from 2% to 1.5% and the European Central Bank trimmed its rate from 4.25% to 3.75%.

The central banks of Canada, China, Sweden and Switzerland all took similar action in the co-ordinated move.

The unprecedented step is aimed at steadying a faltering global economy and slumping stock markets.