England base rate
A Bank of England bigwig has played down talk of a base rate cut next month.
Martin Weale, a member of the monetary policy committee, signalled he was not ready to back a reduction.
The pound strengthened against the dollar following his comments.
Many economists were caught out last week when the Bank voted to freeze its base rate at a record low 0.5%.
Most now think the monetary policy committee will cut the rate at its next meeting on August 4.
However, others believe it may use other tools – including injecting funds into lenders through quantitative easing, or increasing the Funding for Lending scheme.Many economists were caught out last week when the Bank voted to freeze its base rate (Photo: PA)
He said: “In contrast to the experience of 2008, I do not have any sense that either consumers or businesses are panic-struck and, as I observed, there have been no material signs of financial panic.”