After U.S.Fed, Bank Of England Cut rates

After U.S.Fed cut rates, it's now the turn of BOE(Bank Of England) to follow the rate cutting spree, it has cut rates by 0.25% and they are now at 5.25%. They, however said that, food and energy prices still pose threat and is causing inflation to move up sharply. It's however, music to ears of everybody that for the past few trading session, crude oil prices are sliding continously and are well below U.S.$90 per barrel. However, food prices still continue to remain firm due to several reasons, among them notably is bad weather conditions inseveral parts of the globe, conversion of various crops into bio-diesel, loss of productivity in soil in several countries, preference of farmers to more money making crops rather than just producing wheat, rice and corn. Commodity prices of key industrial materials like steel, copper, zinc, lead, gold, silver are still strong, ignoring weak U.S. economic data. These commodities are also getting support from weak U.S. dollar and continues strong demand from commodity hungry China, India. Equity markets still are facing huge selling pressure from large institutions and is expected to continue for some more time as credit market woes and huge write-offs still are haunting these big corporates. Same set of people who are extremely bullish about global economic growth and prospects of equity as best investment are now hiding themselves. Huge volatility coupled with sharp down days is a cause of worry for everybody involved in equities as confidance is at an all time low and it won't came back unless this negative market trend reverses sharply.