22 Oct

Minutes show 9-0 MPC rate cut vote

Minutes show 9-0 MPC rate cut vote

All nine members of the Bank of England's monetary policy committee (MPC) voted in favour of the decision to cut the base rate by half a per cent in conjunction with other central banks.

Minutes of the meeting have shown that the body changed from its previous majority view that it had to "balance" between the risks of higher and lower inflation, arguing that the indications pointed "decisively" to the prospects for the latter being far greater.

Among such factors are the slowdown in the economy, the falling price of oil and the lack of wage inflation pressures, the minutes stated.

MPC members may believe that such factors are likely to drive inflation down sufficiently in the coming months to justify more base rate cuts, which could lower mortgage costs and bolster the property market.

The next MPC meeting is scheduled for November 6th, with the quarterly inflation report due out the following week.

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