MPC

RBS has revised its Bank of England forecasts, scrapping its prediction of further QE and forecasting an initial hike in UK interest rates in the second quarter of next year.

Each of the nine members of the Bank of England's Monetary Policy Committee (MPC) voted to hold interest rates at the historic low of 0.5% this month, minutes from their latest meeting show.

The Bank of England has held interest rates at 0.5% and resisted another round of quantitative easing amid tentative signs of an improvement in the economic outlook.

Chancellor George Osborne should merge the incoming Financial Policy Committee (FPC) with the Monetary Policy Committee (MPC) to create a "single super-committee", it has been proposed.

Two members of the Bank of England's Monetary Policy Committee called for further stimulus to offset the UK's lacklustre growth, the minutes of the latest meeting have revealed.

The UK economy is perpetually subjected to shocks and pressures, rendering hopes of maintaining financial stability indefinitely "over-optimistic", Monetary Policy Committee (MPC) member Paul Fisher said last night.

RISK ON?

Market participants are expecting interest rates in the UK to remain on hold until late 2014, according to Bank of England policymakers.

Martin Weale voiced fears over "persistent" inflation yesterday in a hawkish speech underlining the growing splits at the Bank of England over the path of monetary policy.

Unsecured lending to consumers fell the most in almost 20 years last month, the Bank of England (BoE) said, reigniting expectations it would authorise further asset purchases next month.