The Bank of England is set to slash interest rates this week, possibly to as low as zero, as it looks to cushion the blow to the economy as a result of Brexit.
Mark Carney has said that the economy has already showed signs of strain since the vote on 23 June. With the rate already at a record breaking 0.5%, which is the lowest in the Bank’s 321 year history, the governor is heading further into uncharted territory. It has been suggested that the mooted shift to 0.25% would have little to no effect and economists expect the Bank could go even further and cut the rate to zero and a restart of the money-printing quantitative easing programme this summer.
