Rate cuts vote 8-1 February 20th, 2008

The Bank of England’s Monetary Policy Committee (MPC) voted in favour of the 0.25% rate cut in February by 8-1. The majority vote supports the view that the Bank deems the credit crunch and slowing housing market to carry greater weight than the inflationary pressures caused by higher food and fuel prices.

Commentators believed that the prospect of future rate cuts were diminishing but this latest report and level of majority suggests that a further two or three 0.25% cuts in the near future could be possible.