BoE MPC unanimous on holding rates

CFM (UK) Ltd. News Update: All nine Bank of England policymakers voted to hold interest rates at 0.5% in July, minutes of the meeting show. However, there were signs some MPC members are edging closer to backing a rate rise. The minutes said "a number" of MPC members saw a rising risk of UK inflation heading above the 2% target in the medium term. For these members, the uncertainty around the Greek debt talks was a key factor in voting to hold rates. "Absent that uncertainty, the decision between holding Bank Rate at its current level versus a small increase was becoming more finely balanced," the minutes said. However, the minutes said that for most members, keeping rates on hold would still have been appropriate even without the problems in Greece and the volatility in China's financial markets.

Posted on July 23rd 2015

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