And Governor Sir Edward George has repeated his warning that the BoE might even have to raise rates if consumer demand did not slow down. However, he also stressed that the Monetary Policy Committee might cut interest rates if the world economy takes a turn for the worse.
Asked by parliament's Treasury Select Committee if interest rates had bottomed, King said, "If the world were to evolve as in our central view, that would probably be a reasonable view." But King stressed that members of the Monetary Policy Committee went into each monthly meeting with a "completely open mind" and that the world seldom turned out as one expected.
