MPC member suggests he is open to rate cut

On a recent visit to the Western Isles, Monetary Policy Committee member Martin Weale suggested a preference for a further cut in interest rates, over more quantitative easing (QE). Mr Weale was interviewed by The Herald newspaper and when asked whether he would prefer a base reduction of more or another rise in QE, he was quoted as saying: "I think, at the moment, 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. "I think, if it were clear that the interest rate could be reduced ... without finding some banks got themselves into a position where they had to reduce lending because of the effects of an interest rate cut on their profits (and) if it were clear a reduction in interest rates would be like all other reductions in the interest rate, I think I would probably prefer that to more QE, if I was choosing between them." August 24, 2012