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