Three-way split behind MPC's August rate hold

Seven members voted to hold, one (Tim Besley) voted for a 25bps rate hike, while David Blanchflower opted for a quarter point cut. With the MPC caught between balancing the impact of a slowing economy and rising inflation, there seems little chance of unity amongst the Committee, for at least the next few months. Nevertheless, there was evidence of a softening in the MPC's overall stance. There was acknowledgment of the more mixed near-term inflation outlook, with oil and other commodity prices having fallen. The minutes also revealed that some measures of inflation expectations hav...