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BOE Says Global Turmoil Hasn’t Shaken Its Economic Outlook

  • BOE: premature to draw inferences from this month's events
  • Ian McCafferty maintains call for increase in 8-1 vote split
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Why Does the BOE Want to Raise Rates?

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Bank of England policy makers said the U.K. economic outlook remains healthy and market turmoil related to China’s slowdown hasn’t shaken their view that the time for a rate increase is approaching.

At their September meeting, the nine-member Monetary Policy Committee said it’s too early to draw clear conclusions about developments overseas, a sign they remain focused on withdrawing emergency stimulus that’s been in place since 2009. While the panel voted 8-1 to keep the key interest rate at 0.5 percent, with only Ian McCafferty dissenting, there were still some members who saw potential upside inflation risks.