Last month the Bank of England had cut the rate by 50 basis points to 1.00%. The latest cut by the Bank of England is the sixth since October 2009 and the lowest since the Bank was founded in 1694. The current benchmark rates is 0.50% which puts the BOE in need of a successful quantitative easing policy to boost the economy.
As Economic Indicators continue to drop, auto sales and house prices were released today, the Central Bank has hinted that this rate cut might be the last one for the time being. Of course there is not really any room to cut that would signal to the market a change in the Bank´s policy.
