Minutes of the last meeting of the Monetary Policy Committee (MPC) have revealed interest rates could fall further.
Interestingly the committee even discussed whether it should reduce them to zero, as US legislators have.
“The committee discussed whether a larger cut was warranted. That might be justified by the scale of the downside risks to inflation,” they showed.
Financial firms resident in offices in London would have witnessed the recent difficulties on international markets.
According to the MPC, “asset prices which depended on expectations of future growth in the economy had generally fallen and credit spreads had widened”.
Its assessment also revealed equity markets had fallen internationally, with UK, euro and US indices all down around ten per cent since the committee last met.
The major financial firms are not the only businesses that rent commercial property in London – the capital is a magnet for aspiring smaller businesses.