Bank of England policymakers voted unanimously for this month's 150 basis point cut in interest rates, and considered an even bigger reduction due to a sharp deterioration in prospects for the economy and the likelihood of a big drop in inflation.
"The projections in the Inflation Report implied that a very significant reduction in Bank Rate - possibly in excess of 200 basis points - might be required in order to meet the inflation target in the medium term," according to minutes of the Monetary Policy Committee's November 5th to 6th meeting released today.
However, they showed policymakers did not want to shock markets dramatically and felt they could wait to assess how far rates needed to fall after the government's pre-budget report.
The government is expected to announce broad measures to help businesses and families cope with the economic downturn in the report next week. Depending on the size of any fiscal boost to the economy, that may reduce the need for future interest rates cuts.
The BoE's nine-strong MPC was also wary that too sharp a fall in the pound could pose upside risks to the inflation target.
The November cut took interest rates down to 3 per cent, the lowest in more than half a century. Interest rate futures rose as the minutes reinforced market expectations of further rate cuts in the next few months.
"The minutes are, unsurprisingly, hinting at further aggressive moves in monetary policy to come," said Philip Shaw, an economist at Investec. "Our main case view is still that we are likely to see a 50 basis point cut next month, with the Bank Rate hitting a trough of 1.5 percent over the spring."
The MPC also felt it could leave some of the required rate cuts until it had the opportunity to explain its shift in position in the November Inflation Report.
"Some members thought there was an argument for leaving some of the required policy loosening to the months ahead to support confidence as the economy weakened," the minutes said.