The minutes revealed that the MPC voted eight to one to maintain the bank base rate at 5.25%, with the dissenting vote, actually being in favour of lowering, as opposed to raising, interest rates.
However, the committee remained concerned that the risks to inflation over the medium-term remained on the upside, as in the February inflation report.
Ian Kernohan, Economist, RLAM, comments on today's MPC vote:
“Monetary policy in the UK is certainly not boring and today’s MPC minutes were yet another surprise for markets.
Despite the hype over the inflation data this week, CPI is actually coming in lower than the projection in the last inflation report and today’s vote makes it less likely that interest rates will rise next month. Markets remain too bearish on the prospect for UK rates and sterling is vulnerable to a shift in sentiment.”
