The Bank's monetary policy committee said the outlook for the world economy and the UK had deteriorated in the past month as it became ever more apparent “the global economy is in the throes of a severe and synchronised downturn”.
While it made it clear that it thought the previous 3.5 percentage point rate cuts since October would have an important effect on boosting demand alongside the large fall in sterling, the committee concluded that there was still “a substantial risk of undershooting the 2 per cent inflation target in the medium term”.
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