The Bank of England, the US Federal Reserve and the European Central Bank are among seven central banks that have cut interest rates by 0.5%.

The UK rate move had not been expected until later this week and means interest rates now stand at 4.5%.

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

Central banks of Canada, China, Sweden and Switzerland have all taken similar action.

This co-ordinated move is designed to help the global economy and boost falling stock markets.