News Release
Bank of England Reduces Interest Rates by 0.50% to 6.25%
10 December 1998
The Bank of England's Monetary Policy Committee today voted to reduce the Bank's repo rate by 0.50% to 6.25%.
Since the November Inflation Report, the prospect for global activity appears to have weakened and commodity prices have fallen further. In the UK, GDP growth in the third quarter was revised down, and surveys of activity have continued to indicate a deterioration across the economy, although the labour market is still tight and monetary and financial indicators remain relatively strong. The Monetary Policy Committee judged that the downside risks to both activity and inflation have increased, and therefore reduced interest rates by 0.50% to keep prospective inflation on track to meet the 2.5% target.
The minutes of the meeting will be published at 9.30am on Wednesday 23 December.
