Wednesday, June 18, 2008
MPC considered rate hike
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

The minutes of the monetary policy committee's June meeting showed, as expected, an 8-1 vote for no change, with David Blanchflower again the lone voice calling for a cut from 5%. But the story in the minutes is that the committee considered, and rejected, hiking rates. The fact that this was rejected, and for a number of reasons, should offer some reassurance, as should the fact that the MPC would not have been doing its job had it not considered all the options in the light of a deteriorating inflation picture. But the minutes, which are here, will have the effect of setting nerves further on edge.