Update: Carney rules out negative rates as BoE announces 0.25% cut

'Lower bound' rate will be positive

Laura Dew
clock • 4 min read

Bank of England governor Mark Carney has said he is "not a fan" of negative interest rates, as the Bank today cut rates to 0.25% and expanded its bond buying package by £70bn.

Members of the Monetary Policy Committee voted unanimously for a rate cut, the first move it has made since cutting them in March 2009, following a decision to leave rates on hold at last month's meeting. The Bank said the majority of MPC members expect interest rates to be reduced to zero by the end of the year. In addition to the rate cut, Bank governor Mark Carney announced an extra £70bn in stimulus measures, supported by a six to three vote by MPC members. This will include £60bn in government bond purchases, topping up the total QE asset purchasing package to £435bn, and an ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Interest rate cuts expected after UK GDP edges up 0.1%

Interest rate cuts expected after UK GDP edges up 0.1%

Construction output lowest since 2021

Patrick Brusnahan
clock 12 February 2026 • 2 min read
Leaked Budget document viewed almost 25,000 times ahead of speech

Leaked Budget document viewed almost 25,000 times ahead of speech

Office for Budget Responsibility chair Richard Hughes quit as a result

Jenna Brown
clock 11 February 2026 • 2 min read
BoE's Andrew Bailey: World economy 'remarkably resilient' amid uncertainty

BoE's Andrew Bailey: World economy 'remarkably resilient' amid uncertainty

Markets now 'cautious'

Patrick Brusnahan
clock 09 February 2026 • 1 min read