BOE MPC Minutes, Unanimous Vote For Holding Steady Monetary Policy - 19.9.2012

The Bank of England released the minutes of the monetary policy meeting held on 5-6 September. The Committee members voted unanimously to leave unchanged the Interest Rate and keep the Asset Purchase Program at £375 billion. At the minutes was stated that the inflation has fallen closer to the target of 2%, however recent rising of Oil prices could diminish the falling rate. The global economy slowdown is negatively influencing economic activity in UK and substantial risks are likely to remain in the short-term. It was also reported that UK GDP in the second quarter fell by 0.5% but could pick up in the third quarter, supported by lower inflation and stronger employment data which could increase consumption. According to MPC Minutes for most members this decision was straightforward, although some members felt that additional stimulus was more likely than not to be needed in due course. The British pound lost ground after the release against the greenback falling from 1.6269 to 1.6233.