BOE Cuts rate by 50 basis points lowest rate in England’s History.

Last month the Bank of England had cut the rate by 50 basis points to 1.00%. The latest cut by the Bank of England is the sixth since October 2009 and the lowest since the Bank was founded in 1694. The current benchmark rates is 0.50% which puts the BOE in need of a successful quantitative easing policy to boost the economy.

As Economic Indicators continue to drop, auto sales and house prices were released today, the Central Bank has hinted that this rate cut might be the last one for the time being. Of course there is not really any room to cut that would signal to the market a change in the Bank´s policy.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza