Bank of England may lower base rate if new lending scheme fails

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The Bank of England's monetary policy committee may look at lowering base rate if the new Funding for Lending (FFL) scheme does not work. The minutes from their latest meeting state: “The arguments for and against a cut in Bank rate at this meeting were the same as before. But the impact of the FLS and other policy initiatives might, in time, alter the Committee's assessment of the effectiveness of such a rate reduction. “The Committee could review this option again when the impact of the FLS and other policy initiatives was more readily apparent.” July 20, 2012
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