The Bank of England tomorrow faces its toughest interest rate decision since it was given independence more than a decade ago, experts say, as pressure for a 1% cut builds.
They argue unprecedented market conditions may force the Bank's Monetary Policy Committee (MPC) to shed its reputation for prudent economic management in a bid to boost the economy. Commentators say major cuts are needed to revive flagging financial markets and ensure savings are passed on to consumers, but add the Bank will also be worried about inflation risks in the medium-term. Dealing with its first recession since gaining independence in 1997, the MPC will almost certainly cut interest rates on Thursday, but the extent of any cuts may prove critical for the central bank’s credibilit...
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