20 March 2002, 13:20 Boe MPC voted unanimously on March 7 to hold rates at 4.0 pct
LONDON (AFX) - The Bank of England's monetary policy committee
voted unanimously on March 7 to hold the repo rate at 4.0 pct,
according to the meeting minutes.
The minutes released this morning said the evidence since February
"pointed to somewhat stronger prospects for UK activity".
While it is likely that this would imply higher inflation than was
envisaged in February, it is too early to know by how much and for how
long, the minutes said.
Inflation is, however, likely to be marginally below the target of
2.50 pct for some time, the nine-member committee agreed.
"It was therefore appropriate to wait for further evidence to
assess the change to inflationary prospects," the minutes said.
"The committee was clear that interest rates should not be changed
this month," the minutes said.
"But it would be important to monitor closely how the outlook for
inflation evolved month to month and the committee stood ready to
adjust rates in either direction as necessary," the minutes said.
MPC members agreed that the downside risks for world economic
activity in 2002 have "diminished" and that while backward-looking euro
zone economic figures remain "weak", forward-looking numbers are "more
encouraging".
Unusually, there were no dissenting camps during the debate on
rates, according to the minutes.
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