The Bank of England’s Monetary Policy Committee split three ways for a second month as some officials became more concerned that Britain’s bout of inflation will dislodge price expectations.
Adam Posen kept up his demand to increase the 200 billion- pound ($319 billion) stimulus plan by 50 billion pounds, while Andrew Sentance voted to raise the benchmark interest rate for a sixth month, according to minutes of the Nov. 4 decision released by the central bank today in London.
“Some committee members were concerned that recent inflation outturns and the higher near-term profile meant that the risk to inflation expectations was somewhat greater than previously thought,” the minutes said. “Overall, most members felt that the balance of risks had not altered decisively and that the right action at this meeting was to maintain the current, highly expansionary, stance of monetary policy.”
Bloomberg