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Bank Of England MPC Split 7-2 On Interest Rate

The Bank of England left its interest rate unchanged in a split vote as two members sought a 25 basis point rate cut.

At the Monetary Policy Committee meeting, Governor Mark Carney and six other members voted to maintain the interest rate at 0.75 percent. Meanwhile, Jonathan Haskel and Michael Saunders repeated their call for a quarter point reduction.

The committee unanimously decided to retain the stock of corporate bond purchases at GBP 10 billion and government bond purchases at GBP 435 billion.

The MPC judged that the existing stance of monetary policy is appropriate.

The headline rate is still expected to fall to around 1.25 percent by the spring, owing to the temporary effects of falls in regulated energy and water prices.

Monetary policy could respond in either direction to changes in the economic outlook in order to ensure a sustainable return of inflation to the 2 percent target, the bank said.

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