Wednesday, May 23, 2007
No doves in the MPC for last vote
BBC News: UK rate rise decision 'unanimous'
The Bank of England's decision to raise interest rates by a quarter of a point in May was unanimous, minutes of the rate-setting meeting show. Lingering inflation risks prompted the unanimous decision to hike interest rates to 5.5% - taking the cost of borrowing to six-year highs this month.
Posted by webmaster @ 10:14 AM (148 views) Add Comment
11 Comments
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1. This comment has been removed as it was found to be in breach of our Blog Policies.
2. Becky said...
Interesting to note that even David Blanchflower voted for it this time despite all the predictions that he would abstain.
3. royston said...
".....some members of the Monetary Policy Committee (MPC) had considered voting for a HALF-POINT rise...."
4. harold said...
Very interesting news, and makes the likelihood of a .25 rise in June more than 50-50 IMHO. Certainly given the £’s performance over the past few days the FX markets are certain of it. What is also interesting is the performance of the $, which has also been relatively good over the past few days. This might have something to do with China-US trade talks, I guess... any thoughts from anyone on this?
5. talking rot said...
I'm sorry. Is David Blanchflower still on the MPC? What? He is? It was still unanimous, good grief. No. Wait. Ahhh. I see, he tried to voute for a cut but put the cross in the wrong box. That's better.
6. uncle tom said...
After reading the minutes themselves, I now think a rate rise next month is unlikely - unless some surprising data emerges. The text is full of timidity and uncertainty - they are in 'wait and see' mode.
However, I will be very surprised if we don't see at least two further rises this year.
7. Scott said...
The girls I see at the topless bar I go to in central London, both of them economics students, predict rates will be on hold this month. Besides their studies, their clientele includes a lot of people from the financial sector so this reinforces their belief, and also makes them reliable estimators. The things I have to do to get you guys the information!
8. sold 2 rent 1 said...
Harold,
Read this article on exchange rates and money supply
Why the US$ Will Rally
http://www.safehaven.com/article-7604.htm
9. Papabear said...
Blanchflower voted for a rate cut (yes, a CUT) a few months back. Given that most analysts (including many on this site) were predicting a rise in inflation back then and knowing now that inflation is indeed rising, clearly it shows that the man is incompetent. Is there a mechanism in place for removing MPC members? Given the huge impact of the decisions that he (along with others) takes, surely there must be a way of ensuring that people who are clearly damaging the country are removed from their position.
10. talking rot said...
My call:
5.75% by the end of the year and no higher. Cuts in early 2008.
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