Wednesday, February 23, 2011
Three futile gestures?
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

Mervyn King last week dismissed a small rise in rates for credibility reasons as a "futile gesture". Three members of the Bank of England's monetary policy committee (MPC) disagree, inlcuding the Bank's chief economist, Spencer Dales, who joined Martin Weale and Andrew Sentance in voting for a rate hike.

Sentance upped the ante by voting for a half-point rise, while Weale and Dale wanted a quarter. Adam Posen continued to favour more quantitative easing, so a four-way split. The minutes are here.