Two at the BOE voted against rate cut

Grovelawn Financial News 23/04/2008

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Committee members were split in their decision

Minutes from the last meeting of the Bank of England's Monetary Policy Committee (MPC) show that a split occured between the members when deciding on base rate cut. The committee is made up of: Mervyn King, the Governor, Rachel Lomax the Deputy Governor and six others. Six members, inlcuding Mervyn King, voted in favour of a quarter point reduction, three voters voted against it, two wanted to keep the rate the same. Economists had expected a unanimous verdict of cutting the rate.

The statement from the committee said "A reduction in Bank rate now would also reduce the 'tail' risk of an unexpectedly sharp slowdown in demand later in the year, which if it materialised might thne require a more vigorous policy response in order to hit the inflation target further out".

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