Bank of England Could Cut Rates Further, MPC Member McCafferty Says

The Bank of England (BOE) could cut rates further and boost bond purchases if the economic downturn in the U.K. deepens, a rate-setter at the central bank said Tuesday.

Last week, the BOE slashed its benchmark interest rate to a record low of 0.25 percent, announced an increase in government bond purchases, and lowered its economic growth forecast as the U.K.’s vote to leave the European Union (EU) increased uncertainties.

“If the economy proves to have turned down in line with the initial survey signals, I believe that more easing is likely to be required, but that can easily be delivered in coming months,” Ian McCafferty, an external member of the BOE’s Monetary Policy Committee wrote in an Op-Ed for the Times of London newspaper.

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam