SMPC votes to raise interest rates - July 2007

SMPC votes to increase interest rates by 0.25% by eight votes to one. Most members believe that rates should rise further in forthcoming months

At the latest meeting of the SMPC, seven members voted to raise Bank Rate by 0.25% on 5 July, one wanted the shock therapy of a 0.5% increase, and one member voted to leave rates unchanged, meaning that the 0.25% increase won the day. Six SMPC members had a bias to raise rates further after the July increase. Two of those who wanted a 0.25% increase, together with the one member who wished to hold, had a broadly neutral bias thereafter.

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