Britain: Was The Rate Cut Really `Sensible'?

It's feel-good time in Britain. Consumers are upbeat and spending, and the outlook is improving. So with elections looming and the Tories far behind Labor in the polls, Chancellor of the Exchequer Kenneth Clarke decided on June 6 that a quarter-point cut in interest rates, to 5.75%--the fourth since December and on the heels of April tax cuts--would keep the good times rolling. Another cut may be in the works.

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