FXstreet.com (Barcelona) - The Bank of England's monetary policy committee approved by 8 votes to 1 to keep bank Rate unchanged at 5.0%, with Blanchflower voting for a 25 basis points rate cut, according to the minutes of the meeting held on the 4 and five of June.

The Bank as observed conflicting risks to inflation from a more prolonged slowdown on demand growth and from the persistently elevated inflation, the Committee has judged the overall balance of risks to lie on the upside.

Economic growth in the first quarter has been stronger than anticipated in the Euro Zone, US and Japan, while in the UK, consumption has pointed to a slowdown which might continue in the second quarter. The speed and depth of the slowdown, however, is difficult to asses, according to the Bank.

Inflation has deteriorated further in The UK. Oil prices continue rising, while producer input and output price inflation has reached its highest level in 20 years, and the latest analysis on inflation do support an upward revision for the outlook of CPI inflation over the next year, although the pace for inflation on the near term remains uncertain.

The committee members do not discard the need for a somewhat greater degree of slack (...) to ensure inflation returned to the target, which leaves the door open for a rate hike in the next months.