Bank of England Cuts Interest Rates to Lowest Level Since 1694
By · 9:04 a.m. Jan. 8 ·
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The Bank of England (BOE) this morning cut interest rates by 50bp to 1.5%
- Interest rates are at their lowest the lowest level since the BOE was created back in 1694.
- MPC sees a “significant risk” of undershooting 2% CPI target in the medium term with rates at 2%. Inflation is expected to fall further, reflecting waning contributions from retail energy and food prices and the direct impact of the temporary reduction in Value Added Tax.
– The world economy appears to be undergoing an unusually sharp and synchronised downturn. Measures of business and consumer confidence have fallen markedly. World trade growth this year is likely to be the weakest for some considerable time.
- The outlook for business and residential investment has deteriorated. And the availability of credit to both households and businesses has tightened further, pointing to the need for further measures to increase the flow of lending to the non-financial sector.
