Bank of England slashes rate to 3%

While consumer price inflation was 5.2% in September – more than double the 2% target – the Bank said in a statement accompanying the cut that there was now a significant likelihood of an undershoot on inflation because of the sharp slowdown in the global economy. Ian Kernohan, economist at Royal London Asset Management, commented: “With recent economic data so poor, the market was already expecting a big move from the MPC but a cut of this size shows we’ve entered uncharted territory. Small cuts are not appropriate when the economy is slowing so fast and the MPC was right to be bold.” ...