FXstreet.com (Barcelona) - The Bank of England's Monetary Policy Committee approved by 8 votes against one to keep Bank ate unchanged at 5.5% in the meeting held on the 6 and 7 of January, David Blanchflower voted against, preferring a 25 basis points rate cut, according to the Bank's minutes.

According to the Bank, prices have inceased considerably over the last couple of months given world energy price developments and the likely response of energy retailers,and so has happened with food prices, which have pushed CPI upwards. The Bank warns about prices growing sharply early in 2008 with RPI unlikely to fall back in the short term as it was previously expected.

Over the U.S. economy, the bank states the uncertainty to assess to which extent the housing slump will affect other sectors of economy, as indicators are mixed, consumption seems to have increased in the last quarter despite the fall on housing prices, although the outlook for the next months does not seem bright at all with the consumer sentiment falling, and the sharp fall in constriction jobs and the increase on unemployment.