Bank of England Governor Mervyn King did not rule out the possibility of an interest rate cut. But policymakers are concerned about the impact on smaller building societies, he told the Treasury Select Committee on Tuesday.
Further, King said there is no liquidity trap.
Policymaker David Miles said that quantitative easing will stimulate the economy more than a rate cut. There is a question mark over whether interest rate reduction would do any good, he said.
by RTT Staff Writer
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