The minutes from April’s monetary policy committee show that the Bank of England’s policy makers are in favour of keeping rates at the all time record low of half a percent.
The vote was recorded as being 6 to 3 in favour of keeping the current rates and holding them for now. This is the third month in a row that the same three members have voted to raise interest rates. The committee has however maintained that their view on inflation had not changed and that rates will remain the same. It is not expected that the Bank of England will increase that interest rate until august due to the risk that inflation could rise to or exceed 5%.
Two of the committee members, Mr Dale and Mr Weale voted for a raise of 25 basis points to 0.75% and Mr Sentance voted for a raise of 50 basis points to 1%. This comes after Februarys fall in the consumer price index to 4% was combined with a rise to 5.4% of the producerprice index. Mr Posen however, voted to increase the asset purchase programme by £50bn bringing the quantitative easing to a total of £250bn
Filed under: Economy
