Bank split points to rate cuts ahead

The Daily Telegraph - Business - - Front Page - By Rus­sell Lynch

THE Bank of Eng­land sig­nalled yes­ter­day that in­ter­est rate cuts are loom­ing, as it low­ered growth fore­casts in the wake of Boris John­son’s Brexit deal.

Alarm over a wors­en­ing global econ­omy prompted two of the Bank’s nine Mone­tary Pol­icy Com­mit­tee (MPC) mem­bers to back an im­me­di­ate cut but they were out­voted and rates were held un­changed at 0.75pc.

The Bank warned it “may need to re­in­force the re­cov­ery” – sig­nalling fur­ther stim­u­lus – if global growth fails to re­cover and Brexit un­cer­tain­ties con­tinue, threat­en­ing to leave mil­lions of savers fac­ing lower re­turns if rates go down. The MPC’s first split de­ci­sion since June 2018 sur­prised the City and the pound fell as much as 0.5pc to $1.28.

Gov­er­nor Mark Car­ney re­fused to rule out ex­tend­ing his ten­ure for a third time be­yond Jan 31. Mr Car­ney said he is com­mit­ted to do­ing what is nec­es­sary to en­sure a smooth tran­si­tion.

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