Bank of England Continues To Ease
April 10, 2008
In line with market expectations, the Bank of England (BoE) eased its base rate by 25 basis points today, bringing the effective rate to 5.00%. This rate reduction comes as the 3rd in 5 months from the Monetary Policy Committee (MPC). Citing growth concerns as well as the fallout from the continuing credit market turbulence, the MPC decided to ease despite of existing inflationary pressure. The market will continue to monitor the likelihood of further monetary policy easing, waiting for the MPC’s minutes to further assess the probability of future rate cuts.