International Reuters
by David Milliken
LONDON (Reuters) – The Bank of England appears to be ready to cut interest rates on Thursday for the first time since 2009, seeking to avoid the decision of the UK to leave the European Union will push the country into recession.
While the bank confounded the experts three weeks ago when he left his rate unchanged, said most of its members would probably support a measure in August because uncertainty after the referendum has befallen the economy.
Since then, growth appears to have slowed abruptly and a survey on Wednesday, closely watched by investors, suggested that the British economy was shrinking stronger than the last time the Bank of England (BoE) lowered its rate.
Almost all economists expect the BoE cut interest rates a quarter percentage point to a record low of 0.25 percent, and many believe that a multimillion-dollar program will resume bond purchases.
“There is evidence enough of the negative impact on the economy that justifies some relaxation, “said Philip Shaw, although it considers the magnitude of the slowdown is not clear so I doubt the bank to buy bonds in addition to cutting the rate.
the head of the BoE Andy Haldane economist said he wanted to use “a sledgehammer to crack a nut”, but another official, Kristin Forbes, said the central bank should remain calm and not rush to make a decision until more hard data available.
While most polls consumers and businesses point to a clear slowdown, it is too early to have any specific figure officer how production has been affected by the referendum of 23 June.
If the Bank of England lowered its interest rate to the lowest level in its 322-year history, will add to monetary regulators in Japan and Australia in the last week have taken measures unprecedented stimulus.
(Editing Spanish by Andre Grenon)
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