You probably think it isn’t worth reading but this story is more likely to impact on your quality of life than anything else on Vox Political this week.
Mark Carney and the Bank of England’s Monetary Policy Committee are cutting interest rates because they think the UK economy is about to take a pounding – mostly as a result of the decision to leave the European Union.
He said: “We took these steps because the economic outlook has changed markedly, with the largest revision to our GDP forecast since the MPC was formed almost two decades ago.
“By acting early and comprehensively, the MPC can reduce uncertainty, bolster confidence, blunt the slowdown, and support the necessary adjustments in the UK economy.”
We’d better all hope he’s right.
UK interest rates have been cut from 0.5% to 0.25% – a record low and the first cut since 2009.
The Bank of England has also signalled that rates could go lower if the economy worsens.
The Bank announced additional measures to stimulate the UK economy, including a £100bn scheme to force banks to pass on the low interest rate to households and businesses.
It will also buy £60bn of UK government bonds and £10bn of corporate bonds.
Governor Mark Carney said there was scope to cut the interest rate further.
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