The nine members of the BoE's monetary policy committee agreed that a steep rate reduction was needed to prevent annual inflation falling under the central bank's 2.0-per cent target, according to the minutes.
--PHOTO: REUTERS
LONDON - BANK of England policymakers voted 9-0 to slash British interest rates earlier this month by a full percentage point to 2.0 per cent, and mulled a steeper cut, minutes of their meeting showed on Wednesday.
The BoE had on Dec 4 cut its key lending rate from 3.0 per cent to the lowest level since 1951, amid mounting evidence Britain faces a deep recession.
The nine members of the BoE's monetary policy committee agreed that a steep rate reduction was needed to prevent annual inflation falling under the central bank's 2.0-per cent target, according to the minutes.
'The committee agreed that, given the significant probability of undershooting the inflation target in the medium term, a cut of at least 100 basis points was needed,' the minutes read.
'The committee discussed whether a larger cut was warranted. That might be justified by the scale of the downside risks to inflation.' -- AFP
