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Did the MPC jump the gun in August?

The resilience of the recent data has prompted some commentators to question whether the MPC was wrong to cut Bank Rate to 0.25% and announce new gilt purchases of £60bn and corporate bond purchases of £10bn in August. But monetary policy loosening was probably one of the factors contributing to the improvement in economic conditions in August, through its effect on sterling and on the confidence of businesses and consumers.

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