Bank of England policymakers split evenly last month. This is between those who felt the minimum conditions for considering an interest rate hike and those who thought the recovery was not strong enough. These were stated by the BoE Governor Andrew Bailey.
He told to the members of the Treasury Committee in the lower house of Britain’s parliament that, let him condition this by the fact that it was an unusual meeting. This is because there were only eight members from the committee. And so, it was all four-four. The Britain’s economy reeled from the hit of this pandemic in 2020. The BoE said that it did not intend to tighten monetary policy, at least until there was clear evidence that significant progress was being made in eliminating spare capacity and achieving the 2% inflation target sustainably.
The BoE’s Monetary Policy Committee voted unanimously for keeping its benchmark Bank Rate at 0.1%. This took place at its August meeting. Michael Saunders is the only member, who voted for a reduction in the size of the central bank’s bond-buying program.