LONDON, Aug 20 (AFP): The Bank of England (BoE) is divided on whether to maintain record-low interest rates as minutes published on Wednesday revealed its first split vote for more than three years.
The 7-2 vote in favour of keeping the BoE's main lending rate at 0.50 per cent at its August policy meeting was the first non-unanimous decision on borrowing costs since July 2011.
The split was significant because two members of the policy committee voted for the key rate to be increased.
Markets are watching to see when the Bank of England will embark on a round of interest rate rises as Britain's economic recovery outpaces the neighbouring eurozone.
"For two members, in particular, economic circumstances were sufficient to justify an immediate rise in Bank Rate," the minutes said.
The two, Ian McCafferty and Martin Weale, voted for a rise to 0.75 per cent, while the seven other members of the Monetary Policy Committee which includes governor Mark Carney called for the rate to stay unchanged.
BoE \\\'divided\\\' on need for rate rise
FE Team | Published: August 21, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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