The Bank of England's united front over the UK's fragile recovery showed signs of fraying this month with the UK's prospects shrouded in uncertainty, it was revealed today.
The Monetary Policy Committee (MPC) voted unanimously to keep rates unchanged at 0.5% and hold efforts to boost the money supply unchanged at £200 billion, minutes of the March meeting revealed.
But they also hinted at signs of an evolving split with members "drawing different inferences" over developing inflation risks.
Inflation is currently well above the Bank's 2% target at 3.5% and some members fretted that growing momentum behind recovery and a weak pound could keep it above the target for longer.
Others on the MPC are concerned that the "substantial and sustained" slack in the economy caused by a record recession could drag inflation below target.
"Some members considered that the upside risks to inflation had increased slightly over the month; others felt that the balance of risks had not changed materially," the minutes said.
The impact of January's snow and the VAT hike had created a "mixed picture", while the scale and impact of the MPC's emergency measures to aid the economy remained "highly uncertain", they added.
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