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Wednesday, November 17, 1999 Published at 09:59 GMT
Business: The Economy
Bank considered bigger rate rise
Bank of England governor Eddie George chairs a split committee
The Bank of England's Monetary Policy Committee (MPC) was overwhelmingly in favour of raising interest rates by 0.25% a fortnight ago.
The committee of experts voted eight to one in favour of the rise - with some of the debate at their two day meeting focusing on whether to post a larger 0.5% rise.
The tone of the discussion and the vote were revealed in the minutes of the meeting released on Wednesday.
![[ image: Chancellor Gordon Brown has set the MPC an inflation target]](/olmedia/520000/images/_524537_brown150.jpg) |
| Chancellor Gordon Brown has set the MPC an inflation target |
The minutes show that a number of members discussed the merits of voting to raise rates by 0.5%.
But survey evidence pointing to a slowing of demand growth, and the likely reaction of the pound to such a move, led them to prefer a smaller rise.
Chancellor Gordon Brown has set the MPC the task of using interest rates to keep the inflation rate in the UK as close as possible to 2.5%.
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The Economy Contents
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Relevant Stories 16 Nov 99 | The Economy UK inflation creeps up 15 Nov 99 | The Economy Inflation broadly on target 05 Nov 99 | The Economy Interest rise worries business |
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