BoE decision to hold rates 'no longer unanimous'

One MPC member votes for increase

Daniel Flynn
clock • 4 min read

The Bank of England (BoE) has once again voted to keep interest rates at 0.25%, although the support of its nine-strong Monetary Policy Committee (MPC) for the decision is no longer unanimous, with one member voting to increase rates by 25 basis points (bps).

According to the Financial Times, Kristin Forbes voted to raise rates by a quarter of a percentage point to 0.5%, despite the rest of the committee judging that consumer spending and wage growth remain too sluggish to change rates. However, with Forbes set to leave the MPC at the end of June, the committee's dovish stance on interest rates is likely to stay on track despite her hawkish views. More dovish members noted that wage growth had been "softer than expected" despite a drop in unemployment, while retail sales had "weakened notably". However, Forbes said inflation was rising ...

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