BoE mulls rate cut to 0.25%

Speculation is mounting the Bank of England may be close to cutting base rates to 0.25% and pumping at least £50bn more into the economy through quantitative easing.

Ahead of this month's Monetary Policy Committee meeting on Thursday, poor figures for jobs and retail sales on top of the world economic crisis are piling pressure on the Bank to ease monetary conditions further. A quarter point cut in base rates to 0.25% has been widely discussed, despite arguments as to whether the cost of borrowing is already so low this would have little effect. The speculation has already hurt savers with the best fixed rate bond deals being pulled. According to the Daily Mail, plans to expand its programme of quantitative easing are also being looked at. T...