Wednesday, February 22, 2006
8-1 vote at the Bank
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

The Bank of England's monetary policy committee voted 8-1 to keep interest rates unchanged with Steve Nickell as the only dissenter, as in December and January. Rumours a few days ago of a very close vote were unfounded. Read the minutes here. Most MPC members appear comfortable with a 4.5% base rate. Nothing is likely to happen until May at the earliest.

Comments

unlike you, who have pretty well called regularly and believed that the mpc would drop interest rates i firmly think that regardless of the consumer slowdown rates will not be lowered at all this year the bank has a clear inflation figure to reach 2 years out and tell me david do you see anything coming down in price(apart from asian dvd and tvs) also the bank does now keep an eye on the housing market after its lax effort to contain inflation within it 2003-2005 and will not allow it to run rampant again, this market alone has stored up a myraid of problems for the future they will not wont to make it any worse
regards
gary

Posted by: gary phillips at February 22, 2006 12:41 PM

Actually I've not been predicting aggressive rate cuts, merely one this year, and I didn't expect it to happen this month. Three of the 12 components of the consumer prices index show falling prices on a year ago - clothing and footwear, furniture and household equipment, and recreation and leisure. I agree the Bank won't want to stoke up the housing market but if inflation undershoots significantly, and it is already fractionally below target, the MPC may have no option.

Posted by: David Smith at February 22, 2006 09:04 PM
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