Bank hints at rate cut

The Bank has warned the economy is likely to slow in 2008 and inflation is expected to accelerate, but it suggested even a 0.5% cut in interest rate would keep inflation within its target. The report warned the UK economy could slow in 2008 as the world financial system remains vulnerable to shocks and stock markets also risk falling. Mervyn King, governor of the Bank of England, says: "It's very striking that despite developments we've seen in the last three months, equity prices are on average higher now than they were in August. "There must be some downside risks there. That's factore...