The Bank of England slashed interest rates by 0.5% today in tandem with five other central banks - the first coordinated emergency action since the aftermath of the 9/11 terror attacks in 2001. November 2001. China also lowered interest rates.

Prime Minister Gordon Brown told the House of Commons the cut in the interest rate would "assure people that all action is being taken" to help business.

Mr Brown said: "The whole House will want to know that the Governor of the Bank of England has just announced an immediate 0.5% cut in interest rates.

"He has done so in a co-ordinated action that is happening round the world in which the US Fed has cut interest rates by 0.5%, the ECB by 0.5%, the Swiss, the Swedes and other members of the G10 have all cut interest rates showing that global problems are best dealt with by global action," he said to cheers.