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(CEP News) Frankfurt - The Bank of England's Monetary Policy Committee had voted unanimously to cut its Bank Rate by 150 basis points at its meeting on November 5 and 6, the BOE Minutes revealed on Wednesday.
In the minutes, the MPC said that, with upside risks to inflation having come down recently and growing downside risks to the economy, a strong case for a cut of at least 100 basis points had been made. The report also said that the projections in the BOE inflation report had implied a significant reduction in the Bank Rate, possibly as high as 200 basis points, could be needed to meet the inflation target in the medium term. However, some arguments had emerged against such an aggressive measure. "On balance, the Committee judged that an immediate reduction in Bank Rate of 1.5 percentage points to 3% was necessary to meet the 2% target for inflation in the medium term," the BOE minutes said. "At future meetings, the Committee would be able to reassess the developments in the economy taking into account the potential impact of any fiscal announcement, as well as the reaction of the exchange rate and financial markets more generally to the November interest rate decision and to the publication of the November Inflation Report." By Todd Wailoo,
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