Britain’s ‘knife-edged’ economy is dividing BoE rate-setters
Chief economist and deputy governor for monetary policy both outvoted on MPC for first time since 2007
Rate-setters at the Bank of England are finding their job increasingly difficult.
In its most recent meeting, the bank’s monetary policy committee (MPC) made the decision by the thinnest of margins. Four members wanted to lower rates by 25 basis points, another four preferred to hold, and one voted for a half-point cut. Governor Andrew Bailey called a second round of voting to settle the difference, and the MPC ultimately went for a 25bp cut, ignoring the position of the BoE’s two top experts on
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