BoE MPC voted 9-0 for rate rise in May
23 May 2007
23.05.2007
BoE MPC voted 9-0 for rate rise in May
The release of the Bank of England minutes from their meeting earlier this month, revealed a unanimous vote to raise the UK base rate by 25bps to 5.50%. There was talk from some of the policymakers of a half point rate hike however, they all decided on the quarter point hike and agreed that a further rise may be needed in time. The committee noted that that there had possibly been more underlying inflationary pressures than expected, but still held a view that the CPI rate could return towards the 2.0% target rate later this year.
The market is now likely to pay close attention to forthcoming data releases to gauge the impact of four quarter point hikes in the past ten months.