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Interest rates could be cut again this year

Posted: September 9, 2016

Bank of England Deputy Governor Jon Cunliffe said this week he expects to vote for another interest rate cut this year if the economy evolves as the central bank expects.

“If the economy evolves as set out in the August forecast, I would expect to vote for another cutin Bank Rate this year as highlighted in the Minutes of the MPC’s August meeting,” Cunliffe said in a statement to lawmakers.

“If demand slows more significantly than expected, and the output gap is correspondingly larger, I would be willing to vote for further monetary stimulus.”

The Bank of England said it expects the British economy to slow markedly in the second half of 2016 following the vote to leave the European Union, while avoiding recession.