MPC minutes suggest later rate hike despite 7-2 split

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The Bank of England's Monetary Policy Committee remained split 7-2 against raising interest rates this month but took a gloomier view of the country's economic prospects.

Minutes from the meeting held on 7 and 8 October, released today, showed Martin Weale and Ian McCafferty again voted for a 25bps rise in the base rate this month - despite the committee having had advance notice that CPI inflation had fallen to a five-year low of 1.2% in September. However, the remaining seven members of the committee continued to vote for rates to be held at 0.5%, and the minutes suggested a more pessimistic outlook on the economy - and hence the timing of the first hike. That follows disappointing data from Germany and the eurozone in recent weeks, as well as signs ...

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