Further interest rate cuts are ruled out - for the moment
A member of the group which sets interest rates for the Bank of England said a further cut in interest rates was unlikely to provide much stimulus for the economy.
Paul Fisher, on a visit to Northern Ireland, told the Belfast Telegraph the bank wouldn't rule out cutting rates further, but that at the moment quantitative easing was providing sufficient support.
The Monetary Policy Committee member said: "If we thought it would add more stimulus we would do it but asset purchase through quantitative easing is a more powerful way of aiding the economy...but we're keeping that under review." The bank was waiting to see what impact the extra injection of liquidity from the additional round of quantitative easing had along with the £80bn funding for lending scheme.
The scheme, which has only just begun, allows commercial banks to borrow from the central bank at interest rates which are lowered the more the banks lend to borrowers.
It's intended to increase lending to businesses and consumers.