MPC Votes to Hold Rates but Notes Threat of Inflation

The Bank of England’s Monetary Policy Committee unanimously supported maintaining the current benchmark lending rate of 0.5 percent. The MPC also voted to keep the quantitative easing program capped at £200 billion (US$307.2 billion).

Of note however, the minutes of the meeting did suggest a growing concern over the level of inflation creeping into the British economy:

“There was a range of views among Committee members about how the balance of risks to inflation and activity had altered over the past few months.”

Source: London Times

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