20-03-2008
Bank of England releases MPC meeting minutes
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The Bank of England has released the minutes of the most recent meeting of the monetary policy committee (MPC).
According to information contained in the minutes, during the most recent meeting of the MPC it has decided by a ratio of seven-to-two that interest rates should this month be kept on hold.
The decision contrasts with February's move to reduce interest rates from 5.5 per cent to 5.25 per cent.
"Back-to-back reductions might lead observers to think that the committee was focusing on downside risks to demand at the expense of the medium-term outlook for inflation," said the minutes of the meeting.
"That in turn could lead to an exaggerated response."
The two members of the MPC who did not vote for the hold actually opted for a further reduction in March of 0.25 per cent.
Next month, a decision on interest rates will be announced on April 10th.