Bank of England voted 7 to 1 in favour of unchanged base rate
The minutes from the June MPC meeting have indicated a small shift in the former unanimous vote to maintain UK base rates at 0.5%. It was revealed that Andrew Sentance voted in favour of increasing rates to 0.75% as a means of offsetting the potential risk of inflation which he believes will not fall into the Bank of England's target range in the short-term. However, there was a unanimous vote to continue with a suspension of the quantitative easing program which would suggest that deep seated concerns about the UK economy are not yet fully blown.
While a small shift in the MPC voting pattern will obviously catch the eye of analysts and investors perhaps it is good to see that at least some members of the MPC is taking the threat of inflation seriously. There is no doubt that, if left unattended, inflation could potentially ruin any economic recovery in the UK and cast it back into the dark ages of two years ago. This would undo all of the previous government's significant investment into the UK economy and put the UK in a very dangerous and precarious position.
Share this..
Related stories
Will the worldwide economy unravel because of Dubai?
Despite the fact that governments and leaders around the world have united in trying to play down the impact of the potential Dubai state debt default there are concerns that it will at least have a short-term impact. Whether this will be enough in itself to unravel the worldwide economy and undo the good work done over the last 12 months is highly debatable, but there is no doubt it has had and c...
Read MoreAre we approaching a crunch in worldwide oil supplies?
While for many people the subject of oil supply is something which will never cross their minds, more and more business leaders and economists are sounding the alarm bells about future oil supplies. There is a growing feeling that the worldwide supply of oil is in danger of falling below the level of demand. Indeed a doomsday forecast by a number of business leaders indicates that oil exploration...
Read MoreInsolvencies set to increase in the short to medium term
It has today been revealed that Begbies Traynor, one of the U.K.'s leading corporate rescue and restructuring companies, has seen a massive increase in enquiries over the last few months. The insolvency division itself which accounts for over 80% of the company's profitability is currently running at a near full capacity as the problems of the UK economy start to hit home to many companies.
...
Banks 'met with chancellor over share sales'
Three major British banks would be amenable to the government buying large numbers of shares in the firms, the BBC reports.According to the broadcaster's business editor Robert Peston, executives from RBS, Barclays and Lloyds TSB met with chancellor of the exchequer Alistair Darling.Mervyn King, the governor of the Bank of England, was also in attendance.Writing in his blog, Mr Peston said that th...
Read MoreUK economic recovery at “critical” stage
09/10/2014 The UK economic recovery is under threat from the potential of another Eurozone recession, chancellor George Osborne has warned. The chancellor said that the UK economy is at a “critical” stage in its recovery, and would be left vulnerable if the Eurozone suffers another financial crisis. Recent figures have suggested that the Eurozone economy is struggling at the moment, a...
Read More