MPC still split 6-3 over rate rise

The Monetary Policy Committee (MPC) are split 6-3 against a rate rise for the second month, with opinion divided on how to tackle soaring inflation without snuffing out growth.

Spencer Dale and Martin Weale repeated their calls to immediately increase the Bank Rate by 25 basis points. Andrew Sentance again argued for a 0.5% rise, according to the meeting minutes published today. Governor Mervyn King, deputy Paul Tucker and four other members voted to hold rates at their historic low of 0.5%. Meanwhile, eight members of the MPC again opted to maintain QE at £200bn, with Adam Posen calling for it to be increased by a further £50bn. The continued division within the MPC over how best to curb rising inflation - which jumped a further 0.4% to 4.4% in February ...