Bank of England should cut interest rates, says Times shadow MPC

The Bank of England should deliver its fourth interest rate cut since August on Thursday but should not tell markets to expect a rapid loosening of policy this year, The Times shadow monetary policy committee has said.

The Times Shadow MPC voted 6-3 in favour of lowering the UK’s base rate by a quarter of a percentage point, taking it down to 4.25 per cent from 4.5 per cent. A reduction in borrowing costs is widely expected by investors, who think that the vote split on the Bank of England’s rate setting panel will be more heavily in favour of a quarter-point cut.

Expectations for a procession of rate reductions over the coming year have gathered momentum owing to President Trump’s erratic tariff policymaking. Morgan