BoE Minutes for December Rate Decision

By @ibtimes on

BoE's monetary policy committee, led by Chairman Mervyn King voted 7-1-1 to preserve the bank's key lending rate at record low at 0.50 percent along with preserving the APF program at £200.0 billion.

Member's overruled member Andrew Sentance and Adam Posen calls to change the monetary stand of the bank, where member Sentance called again for 25-basis point increase on rates, to control inflation, while keeping the APF purchases unchanged.

Conversely, member Posen calls for an increase on the APF purchases while keeping interest rates unchanged to boost recovery.

Bank members believe that the bank's monetary policy is appropriate to balance the risks, while noting that future actions could be provided to stimulate the economy further and keep inflation rates on track to meet the bank's medium-term target.

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