BoE policymaker admits more cuts and QE are likely
Samuel Gee, News Editor
9 Aug 2016, 11:22 a.m.
Less than a week after the Bank of England cut interest rates and announced further quantitative easing, BoE policymaker Ian McCafferty has admitted that more for of the same should be expected should the UK’s economic situation decline.
Prior to the latest cuts, rates had remained unchanged since 2009 and the BoE’s latest actions is a worrying sign for savers. Negative interest rates are becoming increasingly common across the globe and it should not come as a surprise should they eventually arrive in the UK.
The Monetary Policy Committee have said to expect rates to be cut again before the end of the year should the economy perform as badly as expected. With the pound predicted to continue to fall towards a three-decade low and a slowing manufacturing industry increasing the UK’s trade deficit, the British economy looks ill-equipped to defy these pessimistic expectations.