Yet another BOE policymaker has suggested the idea of cutting the central bank’s main interest rate. Gertjan Vlieghe has said he will consider voting for a rate cut depending on how the economy has performed since the December election.
The main interest rate affects everything from mortgages to business loans and has a huge impact on peoples’ and firms’ finances.
Vlieghe is now the third policy maker to suggest they may be willing to cut rates when the MPC (Monetary Policy Committee) next meet at the end of January.
Governor of the Bank of England Mark Carney said in a speech on Thursday that it was prepared to take “prompt” action if economic weakness persists. “With the relatively limited space to cut Bank rate, if evidence builds that the weakness in activity could persist, risk management considerations would favour a relatively prompt response,” he said.
With policy makers suggesting an interest rate cut, coupled with poor GBP and Manufacturing production figures posted this morning, we have seen the Pound weaken across the board. Against the Euro and US Dollar the rates have dipped into the mid 1.16’s and high 1.29’s respectively.