Wednesday, July 23, 2008
Guess who voted for a cut?
The Bank of England's Monetary Policy Committee (MPC) was divided over its decision to keep the interest rate on hold at 5 per cent in July but hinted that borrowing costs could rise next month. Minutes from the MPC's interest rate meeting in July revealed that while seven members voted to hold rates, Tim Besley opted to raise borrowing costs to 5.25 per cent while arch-dove David Blanchflower voted for a cut. The minutes also reveal that while members believed a rate rise this month may dent confidence, they did not rule out an increase in August.