MPC rate decision unanimous

The Monetary Policy Committee (MPC) was unanimous in its decision to hold interest rates at 0.5% in September, according to the minutes of its meeting released today.

The MPC also voted unanimously on its decision to continue the £175 billion quantitative easing programme.

The meeting minutes point to several areas of global economic improvement, including improvements in business survey indicators, expanding manufacturing output and positive contributions from net trade.

In Britain, the MPC highlighted positive short-term growth, including house price recovery and manufacturing output growth. It said these could lead to further upwards revision of GDP data for the second quarter.

However, by pointing out the high level of capacity in the British economy, weakening private demand and continuing growth of unemployment, the MPC indicated that it has not ruled out further stimulus.

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