No dissent at the first monetary meeting
Thursday 17 July 1997
The minutes of the June meeting record that the six voting members who were present - out of an eventual total of nine - were unanimous in agreeing that a modest rise in interest rates was needed. This was a contrast to the disagreements that had become the norm between the Governor of the Bank of England and Chancellor Kenneth Clarke in the old-style meetings.
The discussion started out by noting the dilemma for interest rate policy posed by strong growth on the one hand and the strong pound on the other. During the month before the monetary meeting on 5-6 June domestic demand growth had picked up and the pound had climbed further.
Weighing up the prospects for higher demand against the likely impact of the pound on exports, the committee concluded that the economy was likely to continue growing at a pace above its sustainable trend.
"There was a need for tighter monetary policy in order to hit the inflation target two years or so ahead."
There was a discussion of tactics: would a delay in raising rates help limit the impact on the currency? The committee thought not, and decided to act immediately.
- 1 Moscow voted the world's unfriendliest city
- 2 The excuses your boss is most likely to believe when you call in sick
- 3 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 4 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Senior British politicians tell David Cameron: When dead children are being washed up on beaches, it's time to act
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...