... are carried out in a democratic matter monthly - changes are made in the 2.5% to 5% band. Interest rates are also important as an intermediary tool of fiscal policy as govt borrowing is financed according to the relative cost of borrowing - the IT The Bank of England's Monetary Policy Committee today voted to reduce the Bank's repo rate by 0.25% to 3.75%. The Committee reviewed monetary and economic developments in the light of its latest quarterly projections for output and inflation, to be published in the February Inflation Report. RPIX inflation has, as expected, moved a little above target, but this is the result of temporarily large contributions from petrol prices and from housing depreciation. These influences on inflation will persist for some time but are expected to unwind further ahead. Over the next two years, the prospects for demand, both globally and domestically, are somewhat weaker than previously anticipated. In ...

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