The Bank of England deputy governor in charge of financial stability signalled yesterday that he might be prepared to support a cut in UK interest rates later this autumn.

Sir John Gieve told an industry conference that the woes of the financial sector were likely to squeeze the economy even more powerfully than had been expected, while the other economic threat – from inflation – appeared to be subsiding.

Sir John, who is a member of the Bank’s monetary policy committee, supported rate cuts late last year but did not vote in favour of them as the financial crisis gathered pace through the summer.

Financial Times

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