20 Feb, 2008
Published: 12:30 Wednesday 20 February
By: Nicholas Paler, Investment Reporter
for further cuts in interest rates were revived by the minutes from
this month's Monetary Policy Committee (MPC) meeting.
The MPC voted 8-1 to cut rates by 25 basis points to 5.25%. The
sole dissenting voice, that of David Blanchflower, argued for a
greater reduction of 50 basis points to counter the risk of a very
sharp slowdown in UK growth.
The MPC indicated inflation remains under control in the short
term, increases hopes of more cuts in rates. 'The February
Inflation Report, and its accompanying projections, would set out
in detail the upside and downside risks to the outlook for
inflation,' it said.
'The central projection suggested that there was most likely to be
some spare capacity in the economy, even if interest rates followed
the path implied by market yields, and that would therefore help to
ensure inflation returned to the 2% target in the medium