Bank of England reveals scope for Interest rate cuts.

The minutes of the Bank of England’s last meeting has shown the majority of the bank’s nine-member panel agreed that they could cut the key rate by speculated levels and still achieve the 2 percent inflation target.

The policy makers at the Bank of England are negotiating the extent to which they can cut rates to boost the economy from falling house prices and global economic slowdown without affecting the rate of inflation that was at 2.2 percent in January.

Mervyn King of the Bank of England said at the beginning of the month that “if bank rate follows the path implied by market yields, CPI inflation is, in the medium term, more likely to be above the target than below.”

It now seems that developments in the last meeting have opened the possibility of more rate cuts this year, although there are still a range of views still strongly debated.

Some economists believe that inflation report published last week is a better barometer to use in making predictions of what will happen to the rate.

Policy maker Kate Barker said yesterday that despite the signals being made “accurately expressing the bank’s intentions is a major challenge at present.”

The Bank of England policy makers have always vowed to keep assessing the ‘balancing act’ in relation to any decision taken on future cuts.

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