Bank close to 0.5% rate increase

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The Bank of England's Monetary Policy Committee was close to voting for a full 0.5% increase in the base rate earlier this month minutes just published from the last meeting show.

Strong arguments were put forward that neither consumer spending patterns nor inflation would be sufficiently held in check by the 25 basis points rise that the Committee eventually unanimously voted for. The information shows the Bank is increasingly concerned that inflation is pulling away from its central projections at current interest rate levels. ”Arguments for a rise of 50 basis points were discussed, the minutes state. ”First, the forecast suggested that interest rates might need to rise more rapidly at some point than currently expected by the market. A 50 basis point rise...

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