Inflation fears trump growth concerns among Bank of England’s MPC members

The monetary policy committee voted six to three to hold interest rates steady despite consumers’ reticence to spend

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There was no doubt in the City that the Bank of England would hold interest rates at 4.75%. An increase in annual inflation last month and a sharp rise in wages in the autumn meant its monetary policy committee (MPC) was widely expected to hold fire on a third rate cut this year.

What many will find more surprising is the yawning gap between the six committee members who voted to hold rates and the three who voted for a reduction.