MPC voted 7-2 for static base rate

Two committee members voted for a cut of 25 basis points, while the other seven voted for no change, due to the persistence of inflation concerns. The minutes revealed that it was felt another cut so soon after February's quarter point reduction would have sent the wrong signals to financial markets. The minutes said: "Back-to-back reductions might lead observers to think that the committee was focusing on downside risks to demand at the expense of the medium-term outlook for inflation." While analysts expect further cuts in UK interest rates this year, the minutes confirm that inflat...