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BOE Split on Rate Issue

BOE Split on Rate IssueBOE Split on Rate Issue

There is a growing divide within the Bank of England about if and when the central bank should raise interest rates back to the level they stood for seven years before last summer’s emergency post-Brexit rate cut, Business Insider reported. Several members of the bank’s rate-setting Monetary Policy Committee have spoken publicly in recent days, and it is very clear there is a big split in the thinking of the committee’s members. That became even more clear on Wednesday when Jon Cunliffe, who sits on the MPC as deputy governor for financial stability, made clear that he does not support a rate hike anytime soon, citing concerns about slowing consumer spending, which he believes currently trumps the surging inflation caused by the pound’s slump since the referendum — which has itself been a driver of slowing spending.

 

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