MPC still split six-three on rate hike

clock

The Monetary Policy Committee (MPC) was again divided six-three against a rate rise earlier this month, minutes from the April meeting reveal.

For the third month, the committee was split three ways over whether or not to hike rates - whilst six members voted to keep rates at their historic low of 0.5%, Andrew Sentance favoured a 0.5% hike in the base rate as Spencer Dale and Martin Weale pressed for a rise of 0.25%. Adam Posen was again the lone voice calling for an increase in the asset purchase, or quantitative easing, programme by £50bn to £250bn.The MPC said in its minutes inflation had risen to well above the 2% target as a consequence of higher energy and other commodity prices, increased VAT and the impact of the past...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

UK inflation rises to 3.8% in July

UK inflation rises to 3.8% in July

Core CPI also up to 3.8%

Sorin Dojan
clock 20 August 2025 • 2 min read
Bank of England meets expectations and cuts rates to 4%

Bank of England meets expectations and cuts rates to 4%

Lowest level in two and a half years

Isabel Baxter
clock 07 August 2025 • 4 min read
Think tank warns UK fiscal hole could surpass £50bn by 2030

Think tank warns UK fiscal hole could surpass £50bn by 2030

Government not on track to meet ‘stability rule’

Sorin Dojan
clock 06 August 2025 • 1 min read