The Bank of England released the minutes for their meeting held on 7 and 8 January 2015. At recent meetings two members voting for an increase of in interest and a 9 – 0 vote for leaving asset purchases unchanged.
Interest rates: 0.5%
Asset purchases (QE): £375bn
Last month’s inflation rate for the UK at 0.5% the joint lowest reading on record seems to have been the leaning factor for McCatherty and Weale to switch their votes. Inflation has been pulled lower by the dramatic slump in oil prices.
Expectations for a rate rise this year are all but diminished amongst analysts, with the median expectation Q1-2 2016.
The minutes noted the political uncertainty in Greece, interest rate expectations, slump in oil prices and household spending.
Link to the Bank of England MPC Minutes