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14 Aug 2013
BoE Minutes: MPC voted 8-1 in favor of the forward guidance policy
FXstreet.com (Barcelona) - BoE Minutes from the MPC monetary policy meeting held on 31 July and 1 August and released today reveal that the Committee voted unanimously in favor of maintaining the interest rate at 0.5%.
The forward guidance policy, introduced by Mark Carney and assuming that the BoE would not hike rates from 0.5% until inflation falls below the 2.5% target in 18-24 months, was backed by eight MPC members. Martin Weale was the only one to vote against “in order to register his preference for a time horizon for the first inflation knockout that was shorter than proposed.”
All MPC members voted in favor of continuing with the program of asset purchases totaling £375 billion. Still, some officials suggested that further stimulus might be needed, but that would depend on the initial impact of the forward guidance.
Additionally, the minutes reveal that not all of the MPC members considered that the market rate hike expectations were “out of line with their view of the outlook” for the UK economy.
The forward guidance policy, introduced by Mark Carney and assuming that the BoE would not hike rates from 0.5% until inflation falls below the 2.5% target in 18-24 months, was backed by eight MPC members. Martin Weale was the only one to vote against “in order to register his preference for a time horizon for the first inflation knockout that was shorter than proposed.”
All MPC members voted in favor of continuing with the program of asset purchases totaling £375 billion. Still, some officials suggested that further stimulus might be needed, but that would depend on the initial impact of the forward guidance.
Additionally, the minutes reveal that not all of the MPC members considered that the market rate hike expectations were “out of line with their view of the outlook” for the UK economy.