BoE rate-setters 'under pressure for half-point cut'

Bank of England policymakers came under pressure to consider a half-point cut in interest rates earlier this month, it was revealed today.

David Blanchflower told colleagues on the Bank’s Monetary Policy Committee (MPC) that a “larger, precautionary reduction” in interest rates to 5% was warranted.

However, minutes of the meeting two weeks ago showed that Mr Blanchflower was alone in calling for a half-point cut.

The remaining eight policymakers backed a 0.25% reduction to 5.25%.

The Bank of England said last week that it faced a difficult balancing act, amid concerns about a potent mix of slowing growth and rising inflation.