News Column

BoE Minutes: Policymakers Unanimous On Rate, QE

June 18, 2014

LONDON (Alliance News) - Bank of England policymakers unanimously decided to leave the key interest rates and asset purchase programme unchanged at the monetary policy meeting held on June 4 and 5, the minutes showed Wednesday.

All nine members of the Monetary Policy Committee voted to retain the record low 0.50% interest rate and quantitative easing at GBP 375 billion.

The case for raising Bank Rate gradually and cautiously was reinforced by uncertainty over its likely impact on the economy, the minutes said.

All members agreed that, in the absence of other inflationary pressures, it would be necessary to see more evidence of slack being absorbed before an increase in Bank Rate would be warranted.

The precise timing of the rate hike would depend on the outlook for inflation. That, in turn, would depend on the data flow, and in particular what that implied for the degree of slack, the prospects for its absorption, and the broader outlook for wages, the minutes showed.

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Source: Alliance News

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