BOE Voted 7-2 To Keep Rates Unchanged

The Bank of England voted 7-2 to keep the current Bank Rate unchanged at 5% in it's most recent MPC meeting on Jul 9th/10th.

The Bank says the decision was a difficult one with Tim Besley voting for a 25 point increase and David Blanchflower voting for a reduction of 25 basis points.

The MPC stated that the path of inflation would likely be higher than forecasted and that the housing downturn has gathered momentum and the slowdown to growth was more pronounced than forecasted. The committee chose to leave the rate unchanged to send a strong message on inflation with Besley calling for the central bank to anchor inflation to ensure credibility.

The perennial dove Blanchflower voted for a 10th consecutive month to cut rates.