BoE keeps rates on hold amid weaker inflation expectations

McCafferty only member to vote for a hike

The Bank of England Monetary Policy Committee voted 8-1 to keep interest rates at 0.5% this month, as it pushed back its expectations for higher inflation.

In its minutes for the meeting between 5 and 6 October, the MPC said Ian McCafferty remained the only member with the view that interest rates should rise by 0.25%. Eight members, including governor Mark Carney (pictured) felt the current stance on monetary policy remained appropriate to support growth. How are bond managers preparing for an interest rate rise? The MPC noted the near-term outlook for CPI inflation appeared weaker than during the August Inflation Report due to further declines in the oil price. They now expect inflation, which is currently 0%, to not hit 1% until sp...