The Bank of England (BoE) has cut rates by 25 basis points and also unveiled a package of stimulus measures designed to prevent the economy from a slowdown. Will this help West Kirby Mortgage Rates
The UK central bank has restarted its quantitative easing (QE) programme and will purchase an additional £60bn in gilts, as well as up to £10bn in corporate bonds over the next 18 months. It will also introduce a new Term Funding scheme, worth up to £100bn, in order to encourage more bank lending.
The moves come alongside sharp downwards revisions to growth forecasts in the quarterly inflation report. The BoE now expects 2017 GDP growth of just 0.8 per cent, down from a previous forecast of 2.3 per cent. Its 2016 forecast has been held at 2 per cent after better-than-expected growth in the first half.