Bank of England policymaker Martin Weale said he would prefer interest rate reduction to more quantitative easing.
In an interview with The Herald on Friday, he said, "I am very comfortable with the view that we need to establish whether the effects of an interest rate reduction would be positive before we might do it."
The current bank rate is 0.50 percent, the lowest since the bank was established in 1694.
Further, Weale said the Funding for Lending Scheme would have a "reasonably powerful effect".
In an interview in French newspaper, Les Echos, Weale said on Thursday that cutting interest rate could generate perverse effects, and weaken financial position of certain banks.
by RTT Staff Writer
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