BoE stands ready to take whatever steps are needed - Carney

The Bank of England is ready to take whatever action is needed, said Bank of England Governor, Mark Carney, after the MPC voted unanimously to cut the main rate to a new record low of 0.25% and to expand the QE programme to combat the effects of the so-called Brexit.

Although Carney acknowledged they cannot offset completely the Brexit shock, he said they can cut rates further, if needed.

“If the incoming data prove broadly consistent with the August Inflation Report forecast, a majority of MPC members would anticipate a further cut in the Bank Rate to its effective lower bound at one of the MPC’s forthcoming meetings,” said Carney in a press conference. However, when asked, Carney downplayed the prospects of negative rates.

On Thursday, the BoE decided to cut the Bank Rate by 25 bps to 0.25%, for first time since 2009, and expanded its Asset Purchase Facility by £60 billion to £435 billion.