Financial Times FT.com

Sign of Bank’s new direction

By Chris Giles, Economics Editor

Published: February 5 2009 22:14 | Last updated: February 5 2009 22:14

This week’s meeting of the Bank of England’s monetary policy committee appears to have been something of a staging post – a brief halt on the path leading from normal policy to a less conventional destination.

Even as the Bank cut rates by half a point to 1 per cent, the Kremlinologist faction among the nation’s economists scented a tacit acknowledgement that interest rate cuts may have exhausted their usefulness as a tool for boosting the economy.

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