The Bank of England has moved a step closer to ending the era of ultra-low borrowing costs in the UK after two of the nine members on its Monetary Policy Committee voted to raise interest rates.
The split at the top of Britain’s central bank came as the US Federal Reserve’s minutes from last month’s meeting showed there had been little change in policy makers’ thinking, with only one member backing a monetary policy tighter than that supported by chairwoman Janet Yellen.
US policy makers believed the labour market had improved at a faster than anticipated rate over the past year but were concerned over “still-elevated levels of long term unemployment”.
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