Both Spencer Dale, the Bank’s chief economist, and Martin Weale, an external member, abandoned their call for a quarter point rate rise and joined the majority view for policy to be left unchanged. Just three months ago, three members of the MPC were voting for an increase, including a half point hike from Andrew Sentance, whose term has since expired.
The sharp shift in sentiment reinforced expectations that interest rates will remain at their record low for at least another year.
James Knightley, economist at ING Financial Markets, said: “Today’s figures add weight to the view that a hike in interest rates remains a distant prospect – at least 12 months in our view – while an expansion of quantitative easing remains a clear possibility.” The markets are currently not expecting a rate rise until the middle of 2013.
More from the source: BoE turns dovish as Dale, Weale drop calls for rate rise - Telegraph
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I am going to book appointment with a mortgage advisor tomorrow
The sharp shift in sentiment reinforced expectations that interest rates will remain at their record low for at least another year.
James Knightley, economist at ING Financial Markets, said: “Today’s figures add weight to the view that a hike in interest rates remains a distant prospect – at least 12 months in our view – while an expansion of quantitative easing remains a clear possibility.” The markets are currently not expecting a rate rise until the middle of 2013.
More from the source: BoE turns dovish as Dale, Weale drop calls for rate rise - Telegraph
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I am going to book appointment with a mortgage advisor tomorrow
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