London - The Bank of England was split once again earlier this month over the need to lift record-low interest rates, minutes showed on Wednesday.
The bank's nine-member monetary policy committee (MPC) voted 7-2 in favour of keeping its key lending rate at 0.50 percent at its September meeting, repeating the voting pattern from August.
For the second month, policymakers Ian McCafferty and Martin Weale both voted for a rise to 0.75 percent, citing potential inflationary pressures.
However, the seven other MPC members - including governor Mark Carney - called again for the rate to stay unchanged, arguing there was “insufficient evidence” of such pressures.
Policymakers also voted unanimously to maintain the level of cash stimulus, or quantitative easing, at £375 billion ($611
billion, 471 billion euros).
The minutes were published one day after official data showed that 12-month inflation dipped to 1.5 percent in August from 1.6
percent in July.
The Consumer Prices Index (CPI) inflation measure matched May's level, which had been a near five-year low.
The BoE's main task is to keep inflation close to a government-set target of 2.0 percent.
Last week, Carney hinted that the bank could begin to raise interest rates in early 2015, citing the nation's solid economic recovery.
The main lending rate has stood at 0.50 percent since March 2009.
The 7-2 outcome of the August meeting was meanwhile the first non-unanimous decision on borrowing costs since July 2011.
AFP