Bank minutes show split in rates decision

That lone vote, which was for a 25 basis points increase on the 4% UK base rate is expected to be heard early next month because of continued strong house price increases. The minutes talk of a link between house price inflation and domestic consumption. ”Household spending seemed likely to remain buoyant in the near term, and might also be supported by the strength of the housing market,” the minutes state. Yet at the same time, the MPC admits the strength of the connection between consumption and house prices is uncertain. If the link is firmed up by next month the committee's ha...