Deep Dive: Divergence of MPC votes proves BoE's avoidance of groupthink

Should be 'welcomed'

Eve Maddock-Jones
clock • 4 min read

Divergent opinions within the Bank of England's Monetary Policy Committee is one of the central bank's greatest strengths, fund managers have argued.

Responsible for making decisions about the Bank Rate, the nine-member MPC sets and announces policy eight times a year –roughly once every six weeks– alongside regular meetings to consult on how the economy is progressing. The last time the MPC reached a unanimous decision on rates was September 2021, opting to hold at 0.1%. Since the current hiking cycle began, no decision has been made without at least one dissenting vote. At the latest meeting, seven voted to hold rates at 5.25% –governor Andrew Bailey, Sarah Breeden, Ben Broadbent, Megan Greene, Jonathan Haskel, Catherine Mann and...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

Core inflation figures 'final nail in the coffin' for hopes of June BoE rate cut
UK

Core inflation figures 'final nail in the coffin' for hopes of June BoE rate cut

'Sticky' core inflation ongoing

clock 19 June 2024 • 3 min read
UK grocery inflation drops to lowest rate since October 2021
UK

UK grocery inflation drops to lowest rate since October 2021

Down 0.3% from May

clock 18 June 2024 • 1 min read
New Capital's Oisin O'Leary: Why we are holding fire on UK opportunities until we see rates cut
UK

New Capital's Oisin O'Leary: Why we are holding fire on UK opportunities until we see rates cut

'Cusp of an interest rate regime change'

Oisin O’Leary
clock 18 June 2024 • 3 min read
Trustpilot