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| Version 1 | Version 2 |
|---|---|
| Bank voted 9-0 to cut rates to 3% | Bank voted 9-0 to cut rates to 3% |
| (20 minutes later) | |
| The Bank of England's interest rate setters voted unanimously to cut interest rates from 4.5% to 3% on 6 November, but considered a bigger cut. | The Bank of England's interest rate setters voted unanimously to cut interest rates from 4.5% to 3% on 6 November, but considered a bigger cut. |
| The minutes from the meeting show that they decided a bigger cut would risk shocking the markets too much. | The minutes from the meeting show that they decided a bigger cut would risk shocking the markets too much. |
| But there were suggestions that there may be further cuts in interest rates in the coming months. | But there were suggestions that there may be further cuts in interest rates in the coming months. |
| The one-and-a-half percentage point cut was the biggest since 1981, taking rates to the lowest level since 1955. | The one-and-a-half percentage point cut was the biggest since 1981, taking rates to the lowest level since 1955. |
| "It's confirming that we're going to see more rate cuts from the Bank of England, and more aggressive rate cuts," said Audrey Childe-Freeman from Brown Brothers Harriman. | |
| 'Support confidence' | |
| The minutes said that rates might have to be cut to 2.5%, or even lower, to stop inflation falling too far below the Bank of England's target next year. | The minutes said that rates might have to be cut to 2.5%, or even lower, to stop inflation falling too far below the Bank of England's target next year. |
| But they added that: "Some members thought there was an argument for leaving some of the required policy loosening to the months ahead to support confidence as the economy weakened." | But they added that: "Some members thought there was an argument for leaving some of the required policy loosening to the months ahead to support confidence as the economy weakened." |
| There was also concern that if rates had been cut by any more, there could be too sharp a fall in the value of the pound, which would create inflationary problems. | |
| In addition, the committee's members were worried that a bigger cut could be "misinterpreted" and that this could damage its credibility. | |
| The Bank stressed that its decision was based on the government's current tax and spending plans, which meant they would have to be reconsidered after the chancellor's pre-Budget report, which will be published on Monday. | The Bank stressed that its decision was based on the government's current tax and spending plans, which meant they would have to be reconsidered after the chancellor's pre-Budget report, which will be published on Monday. |
| "We continue to expect interest rates to fall to 1% or even below next year," said Jonathan Loynes at Capital Economics. |