MPC split three ways over BoE policy

Seven members of the MPC, chaired by Bank governor Meryn King, voted to hold the key lending rate unchanged at a record low 0.5% and to maintain the central bank's asset purchase program at £200bn. MPC member Adam Posen dissented to call for a further £50bn of quantitative easing, while Andrew Sentance again called for a quarter-point hike in the key lending rate to 0.75%. Some Committee members were concerned the risk to inflation expectations was greater than previously thought, as strong demand growth in emerging market economies could cause commodity prices to rise further. But...