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BoE on hold as inflation looks set to soar to 4%

Committee hints at need for “modest tightening” soon

Bank of England and Stock Exchange
Rachael King

The Bank of England’s Monetary Policy Committee (MPC) voted to keep interest rates unchanged at its meeting today (August 5), despite predicting a further jump in inflation.

The committee unanimously voted to keep interest rates at 0.1%, but voted by a majority of 7:1 to keep the stock of government bond purchases at £875 billion ($1.2 trillion).

Michael Saunders was the sole dissenter. He voted to reduce the target stock of bond purchases to £830 billion.

There were only eight MPC members at

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