Bank of England Cuts Interest Rate

Posted 2008-02-16

The Monetary Policy Committee (MPC), whose panel of nine members meet every month to discuss and set the interest rate for the U.K., recently decided to cut the interest rate by .25 per cent-down to 5.5 per cent. The Bank of England made the decision for a low cut to address slow economic growth while keeping an eye on inflation.
John Charcol’s Ray Boulger reflected that most experts expected the cut. He explained, “With the MPC receiving significant criticism for not cutting the rate for a second consecutive month in January, after a unanimous vote for the December cut, together with discussion on whether a .5 per cent cut might be necessary to achieve economic stability, there was never any real doubt on the outcome of today’s meeting.”

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