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BoE Split On Rate; Unanimous On QE

LONDON (Alliance News) - The Bank of England retained its record low interest rate again in a ...

Alliance News 14 September, 2017 | 12:26PM
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LONDON (Alliance News) - The Bank of England retained its record low interest rate again in a split vote as two members sought a rate hike.

The Monetary Policy Committee voted 7-2 to hold the interest rate at 0.25%. But all nine members voted to maintain the quantitative easing at GBP 435 billion.

Ian McCafferty and Michael Saunders voted for a quarter point rate hike at the September meeting.

According to minutes, some members said a withdrawal of part of the stimulus injected in August last year would help to moderate the inflation overshoot while leaving monetary policy very supportive.

Inflation is expected to overshoot the 2% target over the next three years. Although underlying pay growth has shown some signs of recovery, growth remains moderate.

If the economy were to follow a path broadly consistent with August Inflation Report, all members said monetary policy could need to be tightened by a somewhat greater extent over the forecast period.

All members agreed that any prospective increases in Bank Rate would be expected to be at a gradual pace and to a limited extent.

Copyright RTT News/dpa-AFX

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