18 Feb 2015
BOE MPC vote 9-0 to hold interest rates and QE unchanged
FXStreet (Mumbai) - The Bank of England latest policy minutes released today showed a unanimous vote in favor of maintaining the interest rate unchanged at 0.5% and the QE program at GBP 375 billion.
The details also revealed that all members viewed it is more likely that rates will rise over next 3 years. 2 MPC members said rate hike may be necessary in 2015, while 1 member sees loosening as likely as tightening to be the next step.
The MPC sees wage growth faster than expected, but indicated low inflation as a risk that could limit fatter pay growth. Wage growth is seen picking up to 4% over next 2 years. Meanwhile, the bank sees CPI rising 'fairly sharply' after oil effect fades.
The details also revealed that all members viewed it is more likely that rates will rise over next 3 years. 2 MPC members said rate hike may be necessary in 2015, while 1 member sees loosening as likely as tightening to be the next step.
The MPC sees wage growth faster than expected, but indicated low inflation as a risk that could limit fatter pay growth. Wage growth is seen picking up to 4% over next 2 years. Meanwhile, the bank sees CPI rising 'fairly sharply' after oil effect fades.