Bank of England minutes from the October 8. MPC meeting show a unanimous vote in favour of the 50bps rate cut. Inflation risk is seen as having moved decisively to the downside. While inflation could stay high for a while, the risk of second round affects has diminished due to the deteriorating economic outlook. Interest rate cuts can’t be expected to solve financial market problems. Yes, that’s as maybe, but they won’t do the real economy any harm. Let’s get on with it!!!
Meanwhile, cable is on something of a tear having advanced to 1.6360.
