BoE rate decision 'had full support'
The Bank of England said today that its decision on interest rates a fortnight ago had the full support of its members for a seventh month in a row.
Minutes from the November meeting of the Bank’s Monetary Policy Committee (MPC) showed all nine members voted to keep rates at 4.75% after house prices went into decline and inflation fell to a lower level than expected.
A unanimous vote was widely expected after the Bank published its inflation report last week, which claimed the risks to inflation were now “on the downside”.
The minutes add further weight to speculation that rates will not rise for some time yet and may even have peaked.
The last time there was any dissent was in April when the MPC was split 8-1, with Andrew Large preferring a hike in rates to 4.25% against the wishes of other members.
Today’s report showed there was no discussion of a rate rise even though oil prices hit a record level in October, stoking fears of inflationary pressures in the economy.
Other risks cited by the Bank included the continued growth in cash and credit, the fall in the pound and the rise in the value of shares in the UK stock market.
But the MPC noted that industry had faced a tough summer, and economic growth of 0.4% between July and September was weaker than any quarter since early last year.
The outlook was uncertain but members felt inflation was “well-anchored” around the target of 2% over two years.
The report said: “The committee agreed that no change in the level of official rates was needed at this time in order to keep inflation on track to meet the target in the medium term.”
