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Interest rates 'could be cut further'

Bank of England governor Mark Carney has said interest rates could be cut further and the £375 billion quantitative easing programme expanded if low inflation persists longer than expected.

The Bank of England's governor, Mark Carney, has said that falling food and energy prices over the past few months is responsible for around two-thirds of the difference between current inflation level and the target level.

Stating that the UK is not currently in deflation, Mr Carney added that the falling costs of fuel - with oil prices having halved over the past six months - is also expected to boost take-home pay for workers across the country.

Source:  itv.com

Sam: 12th Feb 2015 11:31:00

 

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