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Bank of England Panel Vote Unanimously for Rate Cut to 3%, Further Rate Cuts Ahead
Wednesday, 19 November 2008 08:38:03 GMT  |  DailyFX Research
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The minutes from the BoE November 5-6 meeting showed a unanimous 9-0 vote behind the 150 bp rate cut and revealed that a larger move was even discussed but that the MPC felt that it would have proved too much of a shock to the market. The minutes clearly show that the BoE is ready to cut rates further, aggressively. "The projections in the Inflation Report implied that a very significant reduction in Bank Rate - possibly in excess of 200 basis points - might be required in order to meet the inflation target in the medium term". "Some members thought there was an argument for leaving some of the required policy loosening to the months ahead to support confidence as the economy weakened", according to the minutes. Today's minutes support our outlook for further significant rate cuts and we look for a 50 bp downward move next month.

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