MPC still split six-three on rate hike

The Monetary Policy Committee (MPC) was again divided six-three against a rate rise earlier this month, minutes from the April meeting reveal.

For the third month, the committee was split three ways over whether or not to hike rates - while six members voted to keep rates at their historic low of 0.5%, Andrew Sentance favoured a 0.5% hike in the base rate as Spencer Dale and Martin Weale pressed for a rise of 0.25%. Adam Posen was again the lone voice calling for an increase in the asset purchase, or quantitative easing, programme by £50bn to £250bn.The MPC said in its minutes inflation had risen to well above the 2% target as a consequence of higher energy and other commodity prices, increased VAT and the impact of the past ...