Mpc Vote Dampens Chance

[Guest wrongmove]

MPC vote dampens chance of further rate cut this year

" The prospect of a second interest rate cut this year receded yesterday after it emerged that policymakers did not even raise the issue at their meeting this month.

All nine members of the Bank of England's Monetary Policy Committee voted to maintain the base rate at 4.5 per cent during their two-day session on 7 and 8 September. Their unanimity followed a tense meeting in August, which was split 5 to 4 in favour of the first rate cut in two years.

Economists are split over the direction of the next move in borrowing costs but said it would depend on whether inflation continued to surge above the Bank's 2 per cent target. Even before Hurricane Katrina, which caused oil prices to soar yet further, inflation was up at 2.4 per cent in August...."

[Leodhasach]

ditto...

Scotsman article on MPC decision