View more on these topics

Inflation fears led MPC to hold base rate

Bank-of-England-Building-BoE-Bus-700x450.jpg

Fears of uncertainty generated by the Greek debt crisis led the Bank of England’s Monetary Policy Committee to maintain the base rate this month.

Minutes from the MPC’s July meeting showed that “a number” of MPC members were concerned of the risk of inflation rising above the Bank’s 2 per cent target.

The Bank says: “For these members, the uncertainty caused by recent developments in Greece was a very material factor in their decisions: absent that uncertainty, the decision between holding Bank Rate at its current level versus a small increase was becoming more finely balanced.

“For most members, even before accounting for the recent increase in uncertainty in the external environment, the current stance of monetary policy remained appropriate to balance the risks of inflation around the target in the medium-term. For all members, the policy decision this month was clear-cut.”

Earlier this month, the MPC voted unanimously to maintain the base rate at 0.5 per cent as well as keeping quantitative easing at £375bn.

CPI figures showed the inflation dropped from 0.1% to 0% in May.

Recommended

BoE-Bank-of-England-Treasury-700x450.jpg
9

MPC member says prepare for rate rise

An influential member of the Bank of England’s Monetary Policy Committee has signalled he believes the time has come to consider increasing interest rates. In an interview with the Financial Times, Martin Weale argued strong wage growth and low unemployment will need a response from the central bank, even if low oil prices continue to […]

Mark-Carney-with-bank-note-in-background-700.jpg

BoE’s Carney says interest rate hike is near

Bank of England governor Mark Carney says a rise in UK interest rates is “moving closer”. Addressing the Treasury select committee today, Carney said “the point at which interest rates may begin to rise is moving closer, given the performance of the economy”. He later added: “The point at which interest rates will begin to […]

Networks hit back over mortgage advice concerns

Mortgage networks have hit back after the FCA raised concerns about a lack of quality control over advice. The regulator’s post-MMR thematic review into advice and distribution found in 59 per cent of cases from lenders and brokers suitable advice was deemed to have been given, with just 3 per cent classed as unsuitable. The […]

The FCA’s five fixes for retirement information

The Financial Conduct Authority (FCA) has started to change the way that people will be told about their pension options. In a recent market study paper, they lay out their final proposals on the information that should be delivered to people approaching retirement and how it should look and feel. During 2015, there will be […]

Survey cover

EEF/Jelf Employee Benefits Sickness Absence Survey 2015

EEF stated in its 2015 EEF Manifesto that the UK’s growth prospects depend on people being fit, working and productive. Keeping people in work and helping people return to work is very important for the manufacturing sector. It means boosting productivity by getting people back into work as early as is possible, as well as fostering workplace cultures and environments that proactively manage individuals’ health conditions so that all can benefit from lower sickness absence outcomes.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. So, shouldn`t the headline read: “Greek Debt Crisis fears led MPC to hold base rate”?

Leave a comment