Home News BoE Minutes : Interest rate decision was made with 7-1 votes

BoE Minutes : Interest rate decision was made with 7-1 votes


2010-05-10_bearbBoE LONDON (Dow Jones ) – The Monetary Policy Committee (MPC ) of the Bank of England ( BoE ) has on its deliberations 7th and 8 July 7 to 1 vote for a confirmation of the prime rate at the record low of 0.50 % voted . ( Reuters photo 🙂

As is clear from the published minutes of the meeting on Wednesday , the MPC member Andrew Sentance said again for an increase in the repo rate by 25 basis points to 0.75 % in order to curb the increasing price pressure in the country. Even at the June meeting Sentance voted for higher interest rates .
The decision as to the volume of bonds bought at 200 billion pounds to leave , fell in July, however, unanimously. This volume has already been reached in late January , so that the " Asset Purchase Facility "( APF) to remain on ice.
The MPC was found at its meeting in early July concerned by the further economic development in the UK. " The outlook for GDP growth had deteriorated slightly over the month , " says the log. Surveys also indicated an increasing slowdown in economic activity. Furthermore, there is evidence that has " weakened the medium-term outlook for growth. "
In view of the gloomy growth outlook is the option of a further easing of monetary policy have been discussed, it said. Because of the high inflation rate in the country but there are also arguments for a tightening of monetary policy.
The inflation rate is likely that the MPC " are probably for several months over the target ", perhaps longer than expected in May. Furthermore, there is the risk that inflation expectations rose . Most MPC members were convinced, however, that the spare capacity seemed inflation. The annual inflation rate is therefore likely to " fall over the medium term "back into the target area as soon as the temporary factors – such as the VAT increase from January 2011 fade – slowly. The inflation rate in May, with 3.4 % higher than the target level of 2% of the BoE .

Website: www.bankofengland.co.uk
– By Laurence Norman and Natasha Brereton, Dow Jones Newswires,
+49 (0) 69 29725 300, konjunktur.de @ dowjones.com

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