Monetary Policy Committee have a lot to discuss

The Bank of England’s Monetary Policy Committee (MPC) is currently undergoing 2 days of talks over interest rates, falling house prices and our ever weaker economy. The MPC is made up of nine members, four of which are external members appointed by the Chancellor.

A cut in Interest Rates?

As it stands the MPC is split, with three members calling for a quarter point drop, one for a half point reduction and five calling for no change. It is a difficult choice to make, what is worse; increasing inflation or an economic slowdown? With five members voting to hold and an unliklihood of anyone changing their mind, Interest Rates look set to hold. Still no good news for homeowners.

One of the members who voted to hold said: “The MPC has to remember its mandate which is to control inflation, not to spare the real economy or the financial system from necessary adjustments”.