The Bank of England has decided to hold UK interest rates at 0.5 percent. The decision marks the 78th consecutive month of record-low rates.
But the Bank’s Monetary Policy Committee was, for the first time this year, not unanimous with one of the nine-member group voting for a rise.
The news comes on what has been dubbed ‘Super Thursday’ as for the first time the minutes of the MPC’s meeting were published immediately after the decision. That was followed by the Bank’s quarterly inflation report.
It said it expected inflation to be back to its 2.0 percent target in two years time in line with previous forecasts made in May and that falls in energy prices seen in the last few months will continue to bear down on inflation at least until the middle of next year. It expects inflation to be “muted” this year.
The minutes revealed “some members” of the committee saw a risk inflation could pick up more strongly than the central forecast.
The BoE raised its forecast for Britain’s overall economic growth this year to 2.8 percent from 2.5 percent.