U.K. Monetary Policy Committee Minutes Released

Minutes of the last (7 and 8 November) Bank of England Monetary Policy Committee were released today, showing the vision for the U.K. economy by the committee members. As the interest rates decision was known by the traders already — BoE left rates unchanged at 5.75%, the major interest was drawn to the exact voting details.
Seven committee members voted for the rates to remain as they were, while two other members — David Blanchflower (who voted for the rates cut during the previous meeting too) and John Gieve (first time pro-cut voter) voted to decrease the rates by 25 basis points.
Published minutes show that the GDP growth might slow down during the next month under continued pressure of high oil prices and mortgage financial crisis. Meanwhile the inflation was kept by the current interest rates at the moderate rate. Considering 2 votes against leaving the rates at 5.75%, major financial institutions predict a possible interest rates cut by BoE to 5.0% until the end of 2008.

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