24
Jan
Mpc voted 8-1 for rate freeze
The Bank of England's monetary policy committee (MPC) were almost
unaninimous in their decision not to reduce interest rates this
month, it has been revealed.
Minutes from the meeting showed that the move to hold interest
rates at 5.5 per cent had the backing of eight members and was only
opposed by one.
Dave Blanchflower voted against the move on the grounds of concerns
over inflation and fears of a slowdown for the UK economy.
Commenting on the release of the minutes, Philip Shaw, chief
economist at Investec, said that he still believed that a cut is
due in February, but that this will be of no more than 0.25 per
cent.
He told Reuters: "We stand by our view that rates will come down
again next month but barring a sudden deterioration in the growth
outlook the Monetary Policy Committee is unlikely to ease
aggressively.
"The fact that GDP growth in the fourth quarter held up relatively
well supports that view."
