BoE: Further rate cut is still possible

The Bank of England said it may reconsider the case for cutting interest rates once the impact of the new funding for lending scheme becomes clear.

Minutes from the Monetary Policy Committee's July meeting, which saw the Bank's quantitative easing programme expand by a further £50bn, saw the committee soften its tone on the prospect of cutting the base rate to below 0.5%. The committee had previously decided a rate cut was less attractive than an extension of the asset purchase programme. "The impact of the FLS and other policy initiatives might, in time, alter the committee's assessment of the effectiveness of such a rate reduction," the minutes said. MPC members voted 7-2 to increase the Bank's quantitative easing programme ...