News Release
Bank of England Reduces Interest Rates by 0.25% to 6%
07 January 1999
The Bank of England's Monetary Policy Committee today voted to reduce the Bank's repo rate by 0.25% to 6.0%.
Since the Committee's December meeting, domestic data and survey evidence have, on balance, shown a continuing slowdown in the UK economy. The labour market remains tight but it seems to have reached a turning point. Evidence from wage settlements and the Bank's regional Agents suggest an easing of upward pressures on growth in pay. The risks from the international environment remain clearly on the downside. In these circumstances the Committee judged that a further reduction in interest rates of 0.25% to 6.0% was appropriate in order to maintain a path for inflation consistent with the target.
The minutes of the meeting will be published at 9.30am on Wednesday 20 January.
Note for Editors
The previous change in interest rates was a cut of 0.50% to 6.25% on 10 December 1998.
