New Year rate rise on way
13 April 2012
THE Bank of England's monetary policy committee voted 8-1 to keep interest rates at 3.75% this month, but issued a thinly-veiled warning that the cost of borrowing will rise after Christmas.
The minutes of December's meeting revealed that only Bank Deputy Governor Andrew Large called for an immediate quarter-point increase.
The majority view was that: 'If the economy continued to evolve in line with the committee's central projections, a further increase in the repo rate would be warranted at some point. But the news was not yet sufficient to justify another increase.
Many City economists expect rates to be lifted in February.
