2010.08.1805:48:00UTC+00Policy Makers Split Over Interest Rate: BoE Minutes

The minutes of the Monetary Policy Committee meeting of the Bank of England showed on Wednesday that eight members voted to retain the interest rate at a record low of 0.5%, while Andrew Sentance sought a 25 basis point hike. The meeting was held on August 4 and 5.

"For one member, the balance of risks was such that it was appropriate to start to withdraw some of the exceptional monetary stimulus provided by the easing in policy in late 2008 and 2009," the minutes showed.

Most members thought that the current level of Bank rate and stock of asset purchases financed by the issuance of central bank reserves remained appropriate to balance the risks to the inflation outlook in the medium term.

Policy makers unanimously decided to maintain the stock of asset purchases financed by the issuance of central bank reserves at GBP 200 billion.

Andrew Sentance had voted for a quarter point hike in the previous two meetings. The MPC had nine members in the August meeting as Martin Weale assumed office, succeeding Kate Barker.

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