Bank of England minutes reveal risks of further pound gains

Peter Spence
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Members of the UK's interest rate setting committee voted unanimously against any policy change in March.

The Bank of England's Monetary Policy Committee (MPC) chose to keep rates at their historic lows of 0.5 per cent, with asset purchases also unchanged.

Minutes of the MPC reveal that sterling could strengthen further as the UK's economy recovers.

The degree to which such an appreciation fed through to CPI inflation was uncertain, and would depend on how far it was absorbed within the supply chain.

Today's Office for National Statistics figures show that unemployment was unchanged at 7.2 per cent in the three months to January.

All committee members agreed that none of forward guidance's knockout conditions had been breached, and with unemployment remaining about the seven per cent threshold that forward guidance remains in place.

No member thought it appropriate to tighten, or to loosen, the stance of monetary policy at the current juncture.