The Bank of England cuts interest rates for the first time since 2009, revives its bond-buying programme and says it will take ''whatever action is necessary'' to achieve stability in the wake of Britain's vote to leave the European Union. David Pollard reports.
(UPSOT) (English) BANK OF ENGLAND GOVERNOR, MARK CARNEY, SAYING: "The MPC agreed an exceptional package of measures, comprising a 25 basis point cut in Bank Rate to 0.25% ... We took these steps because the economic outlook has changed markedly with the largest revision to GDP forecasts since the MPC was formed almost two decades ago." A halving of an already record low interest rate. And more: £60 billion more of QE, a new funding scheme for banks worth up to 100 billion - another 10 billion programme of corporate bond buying. Markets got the policy easing most expected - if not exactly the one everyone wanted. (SOUNDBITE) (English) BGC PARTNERS, MIKE INGRAM SAYING: "That additional amount, 60 billion pounds, if anything perhaps a little bit disappointing. I saw figures out there of anywhere between 100 and 200 billion pounds of additional money, and the Bank of England isn't going to be delivering it." SOUNDBITE (English) SENIOR FX STRATEGIST, RABOBANK, JANE FOLEY, SAYING: "Will it make a real big difference if cheap money is made just that little bit cheaper? And again, because interest rates are so low and monetary policy is already so accommodative, you do have to wonder if on the margin, it would make a huge difference." The BoE is convinced it will. To the extent that Britain's post-Brexit referendum downturn could merit even more easing - and soon. (SOUNDBITE) (English) BANK OF ENGLAND GOVERNOR, MARK CARNEY, SAYING: "If the incoming data prove broadly consistent with the August Inflation Report forecast, a majority of MPC members would anticipate a further cut in Bank Rate to its effective lower bound at one of the MPC's forthcoming meetings during the course of this year." That, while providing its own argument as to why. Growth this year - as outlined in its key quarterly inflation report - still seen at two per cent. But next year marked down from 2.3 percent to just 0.8. The biggest downgrade ever made between reports - bigger even, than those of the financial crisis.