MPC discusses rate rises
The Governor of the Bank of England, Mark Carney, invited the Committee to vote on the propositions that:
Bank Rate should be maintained at 0.5%; and
The Bank of England should maintain the stock of purchased assets financed by the issuance of central bank reserves at £375bn.
The Committee voted unanimously in favour of both propositions.
However two members of the Committee did moot a rise in interest rates as the minutes show: “In light of that aim [to return to the 2% inflation target within two years] and the Committee’s latest set of economic projections, all Committee members agreed that it was appropriate to leave the stance of monetary policy unchanged at this meeting.
“For two members, the immediate policy decision remained finely balanced between voting to hold or raise Bank Rate.
“While there was a range of views over the most likely future path for Bank Rate, all members agreed that it was more likely than not that Bank Rate would rise over the three-year forecast period.”