Bank of England – To Cut Rates to Lowest Level in 300 Years?
By · 5:10 p.m. Jan. 5 ·
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From the UK Telegraph:
The Bank of England is this week poised to cut interest rates to the lowest level in its 300-year history, in the latest sign of the severity of the economic crisis.
The Monetary Policy Committee (MPC) is widely expected to use its two-day meeting this week to cut the benchmark Bank rate below its current 2pc level – the first time this has been done since the Bank was founded in 1694.[...]
But despite expectations that the Bank may consider cutting borrowing costs, some experts are warning it may yet shock the market by leaving rates on hold due to the slide in the pound and the renewed health of the interbank borrowing markets.[...]
[...]The expected move comes alongside growing evidence that the economy is heading for its biggest slump since the Second World War and its worst period of deflation since the 1930s. With most statistics showing the economy has slid further towards recession since last month, the Bank seems unlikely to change its course, according to most experts.[...]
