Date:6 November 2008 I Comments: 6 I Views:8,094

In the news this morning there was debate over the anticipated Bank of England Base Rate change. Many were calling for a 0.5% reduction while other specialists suggested something more drastic like a 1% reduction was needed. There was fear however that a reduction of as much as 1% might scare the markets because if many were calling for 0.5% but the Bank cut them by 1% then what does the MPC (Monetary Policy Committee – responsible for setting the base rate) know that the rest of us don’t…? So a drastic reduction of 1.5% suggests ‘there may be trouble more >