Governor Mervyn King wanted to raise interest rates but was outvoted according to the MPC minutes, reports The Guardian.
The Bank of England's monetary policy committee unexpectedly voted by a majority of just one not to raise interest rates again this month, with the governor, Mervyn King, outvoted.
Minutes of the June 6-7 meeting released this morning caused sterling to jump against other countries and interest rate futures move to price in another rate rise in the very near future.
Mr King was joined by deputy governor John Gieve, Tim Besley and Andrew Sentance in calling for a second consecutive rate rise this month, which would have taken bank rate to 5.75%
But the other five members, including the other deputy governor, Rachel Lomax and chief economist Charlie Bean, voted to leave rates steady.
Analysts had expected a 7-2 vote to leave rates on hold and this marks only the second time in the MPC's 10-year existence that the governor has been on the wrong side of a rate vote.
MPs ON THE COMMONS Treasury Select Committee are considering widening their high-profile investigation into the controversial private equity industry, The Times reports
Senior members of the committee said yesterday that they wanted to ensure that the inquiry’s scope was sufficiently broad that no stone was left unturned in scrutinising private equity’s activities.
Angela Eagle, a Labour member of the committee who has been one of the most prominent critics of private equity, said: “We may well open this up to include others. I don’t think anyone can assume that they’ve got away with keeping their heads down.”
If last week’s showdown between the Treasury Select Committee and Britain’s private equity lobby group was anything to go by, the top bosses set to present evidence today had better be well-prepared.
A COMPANY WITH A NEAR unbeatable record in train punctuality is to take over a huge slice of London's rail and train network, reports The Independent.
Hong Kong based MTR, in partnership with the old established UK firm of John Laing, is to operate the capital's so-called London Overground system - stitching together the creaking North London Line and the soon to be modernised East London tube line.
But the deal has already run into fierce opposition from RMT, the largest rail union, claiming that switching ownership of the East London line to a mainline operator amounted to backdoor privatisation. The union warned of possible industrial action.
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