It has been revealed today that the setters of the interest rate all voted unanimously for a cut in interest rates which saw them fall to 3%. The minutes of the meeting show that the Bank of England setters all agreed that interest rates should be cut and most of them agreed that it should actually be dropped by more than it was. However, it was decided that this would shock the markets too much and therefore only dropped the rate by 1.5%. The minutes show that a 2.5% drop was considered. There were suggestions that in the upcoming months there would be further cuts to the interest rate. The rate is intended to stop inflation fallen too far below the Bank of England’s target for next year.
The next few months should indicate as to whether the fall in interest rate has helped the economy and we will also see if there will be any further cuts.
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