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 ...

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