Inflation concerns dominate MPC vote

Minutes from the committee’s meeting reveal only David Blanchflower voted against keeping rates on hold. The MPC’s concerns over inflation were a major reason for the decision, with high oil and energy prices and the depreciation of the pound being outlined as major concerns. However, the shock rate cut by the Federal Reserve may signal the Bank of England is about to cut rates, though Mervyn King indicated in a speech last night that a big cut would not be on the cards. King says the economy will grow at a much slower pace and inflation could reach a high for the past decade, meaning...