World Economy

BoE Poised to Cut Rates

BoE Poised to  Cut RatesBoE Poised to  Cut Rates

The Bank of England is expected to push the button on the first cut in interest rates for more than seven years on Thursday as the economy falters in the wake of the Brexit vote, Reuters reported. Economists predict that policymakers on the Bank’s Monetary Policy Committee will vote to slash rates to a new historic low in an effort to ward off the threat of recession. Ben Brettell, senior economist at Hargeaves Lansdown, said it was “almost certain” that rates will be cut, with financial markets pricing in a reduction from 0.5% to 0.25%. Policymakers may also look to use other economy-boosting measures, possibly firing up the money-printing presses once more to expand its £375 billion ($500 billion) quantitative easing program. A rate cut would be the first since March 2009, when the bank slashed rates to the all-time emergency low of 0.5% at the height of the financial crisis. It would be good news for borrowers, but spell further misery for long-suffering savers.