The news must have come as comfort for BOE officials, as fears were for the economy to suffer the broader effects of a slowing U.S economy, especially since the U.K economy is much dependant on the Services sector and in particular the financial services.

The economy grew by 0.6 percent in the forth quarter unchanged from the previous estimate, while growing by 2.9 percent on an annualized pace also unchanged from the previous estimate, over 2007 the economy grew by 3.1 percent.

The figures were widely expected in the markets, but the major highlight for the day was the severe dollar's weakness, which sunk greenback into new record lows against major currencies, while we saw gold prices hit a new record high today at $964.90, oil prices also managed to set a fresh record at $102 a barrel, as the Euro reached the $1.50 for the first time ever.

Market players almost locked in the half percentage point cut expected by the Feds next month, future traders now show odds of 96 percent the Feds will reduce their benchmark rates to 2.50 percent, as they attempt to salvage deteriorating growth before inflation starts heating further and limit the bank's options in dealing with increasing downside risks to growth.

Some were expecting that the current situation in the U.K is the mini U.S complex that we see now and was originally caused by the housing boost which proved to be a giant bubble later, the U.K is almost going through the same phase when it first started in the U.S back in 2006, but the main difference was the way the BOE dealt with it.

BOE already had cut their interest rates by 1/2 percentage points, while it took the Feds almost a year before they started cutting their rates and right then it was too late and it took the Feds a total of 2.25 percent cuts so far and they still haven't managed to solve the problem and get the economy back on track, so we might be relieved here that the BOE have control over the whole situation before it becomes too late for them as well.