Bank of England committee remains divided over interest rates rise | Business | The Guardian.
The Bank of England’s interest rate setting committee was split in the last month of this year after two members maintained their view that forecasts of higher wages next year should be offset by higher credit costs.
Martin Weale and Ian McCafferty, who have voted for a rate hike since August, said at the monetary police committee’s December meeting that the current dip in inflation was clouding the vision of the Bank, which should beware runaway prices in 2016 without an early rise in interest rates.
The pair argued that below target inflation, which hit 1% in November, was largely the result of a higher exchange rate and lower raw material prices.
But the MPC voted five to two in favour of keeping interest rates at 0.5%, according to minutes published on Wednesday.
