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

Bank of England meets expectations and cuts rates to 4%

Bank of England meets expectations and cuts rates to 4%

Lowest level in two and a half years

Isabel Baxter
clock 07 August 2025 • 4 min read
Think tank warns UK fiscal hole could surpass £50bn by 2030

Think tank warns UK fiscal hole could surpass £50bn by 2030

Government not on track to meet ‘stability rule’

Sorin Dojan
clock 06 August 2025 • 1 min read
Chancellor Khalaf has a plan to make our economy boom

Chancellor Khalaf has a plan to make our economy boom

'So, Sir Keir, if you're reading, I do genuinely hope Rachel is doing okay. And my number's still the same. So, you know, call me'

Laith Khalaf
clock 25 July 2025 • 5 min read