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(CEP News) - The Bank of England is concerned about the tightening credit conditions in the country and is considering measures to promote lending to businesses, according to a statement from the central bank following the slashing of interest rates by 50 bps as expected.
"The outlook for business and residential investment has deteriorated. And the availability of credit to both households and businesses has tightened further, pointing to the need for further measures to increase the flow of lending to the non-financial sector," read the statement. The comments could be the early signs of more aggressive and unconventional action from the central bank down the road, as pressure builds to adopt a Federal Reserve-like strategy of quantitative easing. The BOE's statement also noted that global economic conditions are in an unusually sharp downturn and that looser monetary policy, combined with a weaker pound sterling, would help provide "considerable stimulus". Furthermore, the Monetary Policy Committee noted a considerable risk of undershooting the 2.0% inflation target in the medium term. By Erik Kevin Franco,
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, edited by Nancy Girgis,
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