Wednesday, Dec 17, 2008

Bank considered bigger rate cut

0% here we come: BBC:

The Bank of England's rate-setting body voted 9-0 to cut rates to 2% this month and considered a bigger move, minutes from its meeting have shown.
The monetary policy committee (MPC) agreed that a cut in the Bank rate from 3% to 2% was the minimum needed.
However, it avoided a deeper cut on concerns it could hit the pound and undermine confidence in the economy.
The minutes are likely to reinforce expectations that UK rates will fall further in the months ahead.

Posted by phdinbubbles @ 10:38 AM (444 views) Add Comment

3 Comments

1. a saver said...

concerns it could hit the pound? Like they care!
I see my swiss francs are up quite a bit on this news, now 57.5, from 40p just over a year ago.

Wednesday, December 17, 2008 11:35AM Report Comment
 

2. mark wadsworth said...

@ a saver, good stuff with your CHF, as base rates are likely to be 0.5% or so in both countries in a few months' time, at what stage will you decide that GBP is oversold and bank your winnings?

Wednesday, December 17, 2008 12:04PM Report Comment
 

3. a saver said...

Hi MW, have told my main clients (pharma company I used to work for in Switzerland) I will be invoicing them in CHF in future. Agreed an exchange rate about 6 months ago thank goodness! I will hold the bulk of my CHF for the next year at least as I have no faith whatever in the British peso. Any advice on timing or re NZ dollars (missed out when they hit 41p) much appreciated.

Wednesday, December 17, 2008 03:30PM Report Comment
 

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