Outgoing governor Mark Carney has said the Bank of England could take “prompt” action if economic weakness persists, including cutting interest rates to “close to, but a little above, zero”.
His comments, which sent the pound to a two-week low against the dollar last night, included suggestions that quantitative easing could be increased by “at least” £60bn.
The Bank of England could also commit to delay any rise in interest rates until inflation was well above the current 2% target for a sustained period.
