In December, the Bank of England reduced interest rates by another 50 basis points a basis point is
0)01 percentage point) after it had cut them by 150 basis points in November. But the rate cut may even be larger. Economists ʺ... expect the Monetary Policy Committee [MPC] to cut rates to 2.5 percent,ʺ...while others ʺ...saw a bigger 75 point cutʺ...or ʺa 100 basis point move.ʺ

Reuters,11/27/2008
In order to__________ , the Bank of Englandʹs rate cut must__________ .

Question

In December, the Bank of England reduced interest rates by another 50 basis points a basis point is
0)01 percentage point) after it had cut them by 150 basis points in November. But the rate cut may even be larger. Economists ʺ... expect the Monetary Policy Committee [MPC] to cut rates to 2.5 percent,ʺ...while others ʺ...saw a bigger 75 point cutʺ...or ʺa 100 basis point move.ʺ

Reuters,11/27/2008 
In order to__________ , the Bank of Englandʹs rate cut must__________ .

Quizplus · Accepted Answer

The Bank of England's rate cut is intended to stimulate the economy by encouraging consumption, which is achieved by decreasing the real long-run interest rate.

In December, the Bank of England Reduced Interest Rates by Another