Base rate cut was a unanimous decision

Share This:

• 

Text size: A A A

All nine members of the Bank of Englands monetary policy committee (MPC) voted to lower the base rate this month, the financial institution has said.

Each month, the Banks governor Mervyn King suggests a possible course of action, based on the two-day discussion leading up to the vote.

The remaining eight MPC members then vote for or against the suggestion - giving their own preferred change if Mr Kings contention is dismissed.

But this months decision, which saw the rate lower to 5.5 per cent, went unopposed among the committee members.

In the minutes of the meeting, the Bank of England states: "The level of interest rates - following a marked tightening in policy last year - was already restrictive and the expected slowdown in domestic demand should act to dampen inflationary pressures."

The vote was the fourth unanimous decision in 2007, an increase over the three undisputed policy assessments in the previous year.

Important Notice
This guide is intended for general information only and is not intended as, and does not constitute, any form of advice, recommendation or endorsement by us of any particular product(s) or services and you should rely on your own further research and professional advice in relation to your specific requirements and circumstances before purchasing any products or services. Use of this guide is subject to the Terms of Use of the KnowYourMoney site.