The Bank of England retained its record low interest rate again in a split vote as two members sought a rate hike.
The Monetary Policy Committee voted 7-2 to hold the interest rate at 0.25 percent. But all nine members voted to maintain the quantitative easing at GBP 435 billion.
Ian McCafferty and Michael Saunders voted for a quarter point rate hike at the September meeting.
According to minutes, some members said a withdrawal of part of the stimulus injected in August last year would help to moderate the inflation overshoot while leaving monetary policy very supportive.
Inflation is expected to overshoot the 2 percent target over the next three years. Although underlying pay growth has shown some signs of recovery, growth remains moderate.
If the economy were to follow a path broadly consistent with August Inflation Report, all members said monetary policy could need to be tightened by a somewhat greater extent over the forecast period.
All members agreed that any prospective increases in Bank Rate would be expected to be at a gradual pace and to a limited extent.
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