FXstreet.com (Barcelona) - BoE Minutes from the MPC monetary policy meeting held on 5 and 6 September and released today reveal that the Committee voted unanimously in favor of maintaining the interest rate at 0.5% as well as to continue with the program of asset purchases totaling £375 billion.
According to the minutes, the MPC judged “that there was a substantial margin of spare capacity in the economy, particularly in the labour market.” which in their opinion would continue to weigh on inflationary pressures in the UK.
All MPC members affirmed that the best course of action at the September meeting would be to carry on with the asset purchase program, as demand continued to be weak and the outlook uncertain. Inflation remained above target and the FLS had been launched just recently, making it difficult to assess the impact of the lending plan. Nevertheless, “some of these members felt that additional stimulus was more likely than not to be needed in due course.”
According to the minutes, the MPC judged “that there was a substantial margin of spare capacity in the economy, particularly in the labour market.” which in their opinion would continue to weigh on inflationary pressures in the UK.
All MPC members affirmed that the best course of action at the September meeting would be to carry on with the asset purchase program, as demand continued to be weak and the outlook uncertain. Inflation remained above target and the FLS had been launched just recently, making it difficult to assess the impact of the lending plan. Nevertheless, “some of these members felt that additional stimulus was more likely than not to be needed in due course.”
