Bank of England policymakers remain divided on interest rate increase

Economic Indicators Associated Press

Divisions remain at the Bank of England on whether to raise interest rates, with policymakers voting 7-2 at their last meeting to keeping the main rate at a record low 0.5 percent.

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Minutes released Wednesday from the Nov. 5-6 meeting show that policymakers retained the status quo even as Europe's third-largest economy grows. But with inflation at 1.3 percent, well below the 2 percent target, pressure to raise rates remains muted.

Ian McCafferty and Martin Weale were in the minority among policymakers in voting for an immediate rate rise. The two policymakers suggest there is evidence the labor market is tightening and that the bank should anticipate market pressure by raising rates in advance.

The Monetary Policy Committee voted unanimously to refrain from pumping money into the economy.