Bank of England rate setters considered an even more substantial cut in the key rate than the 1.0 percentage point agreed earlier this month.

The deliberations, revealed in the minutes of the Bank’s monetary policy committee meeting, published yesterday, prompted economists to forecast another substantial rate cut in January. Rates could move to zero next year, economists said.

The MPC voted unanimously to cut rates to 2.0% – the lowest level since 1951 – from 3.0%. But the nine-member group decided against cutting interest rates more aggressively because of the dangers of further undermining sterling and confidence in the UK economy.

Financial Times