Bank of England flags more cuts

The Bank of England’s top two monetary policymakers yesterday said UK interest rates may need to fall further, as surveys sustained their view that even a “sledgehammer” stimulus will not be enough to fully counter a post-Brexit vote slowdown.

Ben Broadbent, the Bank of England’s deputy governor for monetary policy, told Reuters he would support reducing interest rates again, while his boss Mark Carney repeated that rates could fall further if needed.

Their comments follow Thursday’s rate cut to a new record low of 0.25% and the launch of stimulus measures worth up to £170bn (€200bn) — a huge package designed to offset the shock from June’s vote by Britons to leave the EU.