Bank of England Policymakers Debate Rates Outlook in June MPC Minutes
Key Excerpts from June MPC Meeting and Member Comments
LONDON, June 18 (Reuters) - The Bank of England left interest rates on hold at 3.75% on Thursday after a split 7-2 vote by its Monetary Policy Committee. Below are key excerpts from comments by individual members of the MPC about their latest decision.
Voted to Maintain Bank Rate at 3.75%
Governor Andrew Bailey
"There has been a marked fall in energy prices in recent days, reflecting progress on talks involving U.S. and Iran. But the situation remains unpredictable, and there is clearly a risk that energy prices remain elevated for an extended duration."
"I am content at the present time with holding, while accepting that risks to inflation and interest rates are on the upside, as reflected in the upward slope in the sterling yield curve, which appears to be accounted for more by risk premia than expected rates.
"I would respond promptly to any signals that an extended period of elevated energy prices could be leading to stronger possible second-round effects."
Deputy Governor Sarah Breeden
"I remain committed to acting early and decisively should material second-round effects become likely."
External MPC Member Swati Dhingra
"If the situation (on price pressures) were to worsen, this may warrant some further tightening. But I do not see a compelling case to increase Bank Rate pre-emptively without new evidence of more intense first-round shocks."
Deputy Governor Clare Lombardelli
"Were inflation signals to indicate inflation would persist above target, this would require policy to respond more forcefully to inflation pressures."
External MPC Member Catherine Mann
"Why wait (to hike rates)? Research shows that a forceful Bank Rate decision can have a quick effect on inflation and inflation expectations. So I have time to continue to evaluate measures of inflation expectations."
Deputy Governor Dave Ramsden
"I continue to place about equal weight on Scenarios A and B materialising after the summer, but even less weight than before on Scenario C."
"Holding Bank Rate at this meeting keeps options open."
External MPC Member Alan Taylor
"Absent worse news, I cannot see a case for tightening now, and an active hold is reasonable. If the conflict resolution holds, and risks diminish, lower rates could be preferred."
Voted to Raise Bank Rate to 4%
External MPC Member Megan Greene
"A proactive hike now in Bank Rate should help anchor inflation expectations."
Chief Economist Hugh Pill
"(A rate hike) would establish a stance of monetary policy that is well-placed to address the significant uncertainties the MPC faces."
Article Credits and Keywords
(Writing by Andy Bruce; editing by David Milliken) ((david.milliken@thomsonreuters.com)) Keywords: BRITAIN BOE/QUOTES
