Bank of England poised for rate cut

The Bank's governor, Mervyn King, will be granted approval by the Treasury within days to create up to £150bn in new money in the coming months to buy up everything from corporate bonds to government debt. It will pave the way for the Bank's Monetary Policy Committee effectively to "start the presses" at its interest rate setting meeting this Thursday.

...

Many mortgage lenders are refusing to pass on further cuts in borrowing costs to their customers, But most significant of all will be the MPC's undertaking at the meeting this week to start buying government bonds in what many see as the "nuclear option" for monetary policy.