BoE mulls rate cut to 0.25%; Odds shorten on more QE

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Speculation is mounting the Bank of England may be close to cutting base rates to 0.25% and pumping at least £50bn more into the economy through quantitative easing.

Ahead of this month's Monetary Policy Committee meeting on Thursday, poor figures for jobs and retail sales on top of the world economic crisis are piling pressure on the Bank to expand its programme of quantitative easing, the Daily Mail reports. To date, the programme has been worth £200bn or 14% of gross national product. Ben Broadbent, who joined the Bank's Monetary Policy Committee in June, said in a recent interview that he was 'reasonably close' to voting for increasing QE. He said the international environment was 'clearly disinflationary' which provides support for further...

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