Minutes for the Bank of England’s latest meeting could reveal another policymaker crossed the floor to vote for interest rates to rise, increasing the momentum towards tighter lending conditions. There is fierce debate among Bank policymakers about the path ahead. Even if the split stayed the same, the minutes of the February gathering are expected to show a shift in sentiment among the nine-strong Monetary Policy Committee towards a rate rise sooner rather than later.
Governor Mervyn King referred to “real differences” in the MPC’s views when he presented the Bank’ quarterly inflation report earlier this month, fuelling speculation of a deepening divide. The nine members of the committee are divided as to whether to raise rates now, to stop expectations that prices will continue to rise getting entrenched, or hold off from a course of action that might threaten growth, given that the full impact of government austerity measures have yet to hit. The previous meeting saw Martin Weale join his colleague Andrew Sentance in voting for a rate rise, while the other seven MPC members, including Mr King, kept voting for no change. Adam Posen, at the “dovish” end of the MPC, was the lone voice calling for further easing of conditions, via more quantitative easing, on top of keeping rates at their record 0.5pc low.
Governor Mervyn King referred to “real differences” in the MPC’s views when he presented the Bank’ quarterly inflation report earlier this month, fuelling speculation of a deepening divide.
The nine members of the committee are divided as to whether to raise rates now, to stop expectations that prices will continue to rise getting entrenched, or hold off from a course of action that might threaten growth, given that the full impact of government austerity measures have yet to hit.
The previous meeting saw Martin Weale join his colleague Andrew Sentance in voting for a rate rise, while the other seven MPC members, including Mr King, kept voting for no change.
Adam Posen, at the “dovish” end of the MPC, was the lone voice calling for further easing of conditions, via more quantitative easing, on top of keeping rates at their record 0.5pc low.
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