• MPC voted unanimously to hold interest rates at 0.5% and the QE programme at £375bn
Commenting on the MPC Minutes, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“A unanimous vote to hold interest rates and QE at their current levels is a pleasant surprise. We have repeatedly stated that more QE is not necessary at the present time, so this will be welcomed by businesses. The forward guidance issued upon the decision that interest rates will remain low for the foreseeable future will reassure business. There is also a recognition that the MPC should look for policy measures other than more QE. When the MPC makes its views on future measures known in August we hope that it considers the possibility of using the existing QE programme to purchase private sector assets other than gilts, including securitized SME loans.”