The Bank of England’s MPC – which sets interest rates – agreed two weeks ago to slash rates by 150 basis points to 3 per cent: their lowest level for half a century.

The minutes of that meeting, out today, suggest that members believe more cuts are needed. Interesting to note however they agreed ”it would make sense…to reassess the required scale of monetary easing after the Chancellor’s pre-Budget report”.

In other words, the bigger the fiscal stimulus, the less the interest rate cuts. That is certainly how some economists are interpreting it today.

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