The Bank of England released the Minutes of the Monetary Policy Committee meeting on 3 and 4 August 2011, after the bank's governor Mervyn King invited the committee to vote on holding the interest rates unchanged at 0.5% along with maintaining the stock of asset purchases at 200 billion pounds.
The bank said in the Minutes that all the committee members agreed to keep interest rates at low record of 0.5% a surprise from the last meetings when two members voted for rate increase by 25 bp. Meanwhile, eight members voted to keep the stock of asset purchases steady at 200 billion pounds and again Adam Posen voted against the proposition and favored an increase in the APF by 50 billion pounds.
The Bank as expected said that growth will remain weak in the near term, reflecting the continuing squeeze on household's real incomes, but it will be gradually recover during the coming years.
In regards to inflation, the bank said nothing new after the inflation report explained that inflation pressures are rising as expected, while inflation is expected to reach 5% during the coming period, but in the medium-term inflation will decline to reach around the target of 2% by 2013 as temporary factors will diminish gradually.
The following members of the Committee were present:
Mervyn King, Governor
Charles Bean, Deputy Governor responsible for monetary policy
Paul Tucker, Deputy Governor responsible for financial stability
Nicholas Macpherson was present as the Treasury representative.