Discussion turned to increasing the Bank’s £200bn of gilt purchases to stimulate the economy on concerns that the outlook for growth had “deteriorated a little”, the minutes showed. Policymakers voted 7-1 in favour of leaving rates unchanged at 0.5pc and quantitative easing on hold in the July meeting, suggesting rates will stay lower for longer.
The majority of members, including Governor Mervyn King, raised concerns about the recovery after setbacks in the US and Europe, and warned that the Budget may have harmed short-term growth prospects while reducing longer-term risks.
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