Inflation outlook the reason for unchanged base rate
Wednesday, 20 April 2011
The unchanged outlook on inflation is the main reason why the Monetary Policy Committee (MPC) voted against raising the base rate this month, minutes from the body's latest meeting have revealed.
According to the document, MPC policymakers were six to three in favour of keeping the rate at the record low of 0.5 per cent.
Those in banking jobs who have been watching closely for any sign of a rate hike may be interested to note that three members declared they were in favour of an increase - the third month in a row that a trio have made such a decision.
Andrew Sentence, who has been campaigning for a change for some months, said it should be raised to one per cent, while Spencer Dale and Martin Weale both called for an increase to 0.75 per cent.
The base rate has remained unchanged since March 2009, when it was cut by 0.5 percentage points due to continued concerns over the fragility of the UK economy at the height of the economic downturn.
