UK MONEY RATES FALL AS BANK APPROVES BASE RATE CUT A half point cut in base lending rates was announced by the big four clearing banks today after the Bank of England finally endorsed such a move following weeks of downward pressure, dealers said. During its routine intervention in the market, the bank trimmed the rates at which it deals with the discount houses by half a point and National Westminster led the other clearing banks in reducing its base rate to 10-1/2 pct from 11 pct. The timing of the Bank of England move took operators by surprise after its recent action seemingly designed to dampen hopes of a base rate cut ahead of the U.K. Budget on March 17. For some time, fundamentals have led the market to push for a one point cut in base lending rates to 10 pct but the central bank has declined to follow wholesale money market rates down. Although political considerations -- the government's wish to see a fall in base rates coincide with the Budget -- had been suggested by operators last week as reasons for the Bank's delaying action, worries about the real strength of sterling and perhaps about the market's reaction to the content of the Budget may have been behind the central bank's caution, dealers said. In the event, sterling continued firm after the rate cut, leaving the market still looking for another half point fall. Consequently, rates in the money market eased during the day, one-month interbank sterling shedding 5/16 point to 10-9/16 7/16 and three-months trading 1/16 point down at 10-5/16 3/16 pct. Sterling cd's were similarly down between 5/16 point in one month and 1/8 point in one year. Overnight interbank money for tomorrow was indicated at around 11 pct, almost a point below the levels ruling at the end of last week. Today, overnight touched a high of some 11-3/4 pct after the Bank took out 228 mln stg of an estimated 300 mln stg shortage.