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Three-way split remains at the Bank

Three-way split remains at the Bank

Category: Economy

Updated: 18/05/2011
First Published: 18/05/2011

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This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The three way-split in the Bank of England continued to rear its head this month, it has been revealed.

The Monetary Policy Committee (MPC) meets at the beginning of each month to discuss the conditions of the UK economy and set interest rates.

While the majority of the MPC again voted to freeze interest rates at 0.5% this month, three members voted for a rise.

In his last month on the MPC, Andrew Sentance voted for rates to be increased to 1.00%.

Mr. Sentance has consistently voted for rates to be increased since he joined the MPC last summer, but will now be replaced after his nine month stint came to an end.

HM Treasury confirmed that Dr Ben Broadbent would replace Mr Sentance yesterday.

Spencer Dale and Martin Weale also voted for a rise in rates, both proposing a 0.25% rise which would have taken the base rate to 0.75%.

The minutes of the MPC meeting also revealed that Adam Posen voted to inject another £50 billion into the economy to take the value of the Bank's programme of quantitative easing to £250 billion.

The meeting was conducted before the Consumer Prices Index rose to 4.5%, a figure that is likely to lead to calls for a summer rise in interest rates to help combat the effects of inflation.

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