MPC still divided on interest rates

At the meeting earlier this month, the committee decided to keep the base rate at 0.5% - the historic low first set back in March 2009 - while also maintaining the quantitative easing (QE) programme at £200bn. According to the minutes, only Spencer Dale and Martin Weale of the nine-man committee sought to increase rates, by 25 basis points. In the previous meeting, Andrew Sentance, in his final month as an MPC member, called for an increase to 1%. Inflation remained at a two-and-a-half year high of 4.5% in May - more than twice the Bank of England's target. On quantitative easin...