The BoE cut the repo rate by 50 bp to 1.50% in line with expectations. In the statement accompanying the announcement, the central bank said that it expects inflation to fall further and that today's rate cut was justified as the MPC sees a significant risk of inflation undershooting 2% in the medium term. The central bank noted that measures of business and consumer confidence has fallen markedly, but saw that the Sterling depreciation could help to moderate the global growth slowdown on U.K. net exports. Gilt futures have knee-jerked on the release, with the March 10-year contract temporarily dipping down towards 121.10 as somewhat more than a 50 bp rate cut was prices in by the market, but quickly recovered back up to 121.23 and versus 121.38 just prior to the announcement.