London: The Bank of England was split once again earlier this month over the need to lift record-low interest rates, minutes showed on Wednesday.
The bank’s nine-member monetary policy committee (MPC) voted 7-2 in favour of keeping its key lending rate at 0.50 per cent at its September meeting, repeating the voting pattern from August.
For the second month, policy makers Ian McCafferty and Martin Weale both voted for a rise to 0.75 per cent, citing potential inflationary pressures.
However, the seven other MPC members — including governor Mark Carney — called again for the rate to stay unchanged, arguing there was “insufficient evidence” of such pressures.
Policymakers also voted unanimously to maintain the level of cash stimulus, or quantitative easing, at £375 billion ($611 billion, €471 billion).
Inflation
The minutes were published one day after official data showed that 12-month inflation dipped to 1.5 per cent in August from 1.6 per cent in July.
The Consumer Prices Index (CPI) inflation measure matched May’s level, which had been a near five-year low.
The BoE’s main task is to keep inflation close to a government-set target of 2.0 per cent.
Last week, Carney hinted that the bank could begin to raise interest rates in early 2015, citing the nation’s solid economic recovery.
The main lending rate has stood at 0.50 per cent since March 2009.
The 7-2 outcome of the August meeting was meanwhile the first non-unanimous decision on borrowing costs since July 2011.
