Bank of England policymakers voted unanimously to keep rates on hold this month amid 'substantial uncertainties' over Government belt-tightening and euro zone support efforts, it was revealed today.
Minutes of the May interest rate meeting, which was delayed until after the British election, showed the Monetary Policy Committee wanted to remain in wait and see mode, with all nine members opting to keep rates at 0.5% and maintain the £200 billion sterling money supply boost.
The MPC met following the inconclusive election result and heightened market turbulence caused by concerns over the euro zone package put forward by the European Union and International Monetary Fund.
UK rate-setters believed the risks of rising inflation had increased, but minutes noted they felt it was 'too early to assess with confidence the overall impact of recent developments on the medium-term outlook'.
'Some of the present uncertainties should be reduced by the time of future meetings,' the MPC added.
In another parting shot at the Labour administration, the MPC said a 'more detailed and demanding path for fiscal consolidation' than set out in the Budget might be needed to allay market fears, according to the minutes.
