MPC vote to maintain 4.5% bank base rate

Eight of the nine Monetary Policy Committee members voted to maintain interest rates at 4.5%, with Stephen Nickell voting against, preferring a reduction of 25 basis points. The minutes showed Nickell called for a cut because gross domestic product growth had decreased over the past 18 months, with the preliminary estimate for quarter four at 0.6%. Nickell thought the central projection for consumption and investment appeared too optimistic even though it had improved in recent months. It seemed likely that inflation would fall below target once the effects of higher energy prices had d...