Tax increase creates dilemma for BoE policymakers

bank-of-england

The Bank of England is considering using further stimulus to boost growth despite expectations that a rise in value added tax (VAT) will keep inflation above target, minutes from the Bank's Monetary Policy Committee (MPC) meeting earlier this month showed.

The minutes, published on Wednesday, said the MPC would consider "further stimulus measures" to "offset the softening in demand prospects". The Committee also said the increase in the VAT rate, from 17.5% to 20% at the beginning of next year,

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