MPC voted 7-1 to hold rates

Only David Walton voted for a 0.25% increase in the base rate, calming fears the MPC was beginning to grow more hawkish in its response to the May inflation report. While the MPC said domestic inflation pressure remains weak, pressure has come from rises in domestic gas and electricity prices, while an increase in the labour force suggests wages demands for increased wages will remain low. It was also noted that higher import prices might have an upward effect on inflation beyond that predicted by the Bank. But taken altogether, the minutes suggest the MPC felt inflationary pressures wou...