BOE Minutes Show Rate Rise Debate Intensifying

        By Jason Douglas and Jon Sindreu
        LONDON--Bank of England officials voted unanimously in July to keep the central bank's benchmark interest rate steady, but their united front masks an increasingly lively debate over when to start raising borrowing costs.
        Minutes of the Monetary Policy Committee's July policy meeting published Wednesday, show all nine members of the rate-setting panel voted to keep the BOE's benchmark rate at a record low of 0.5% earlier this month. All nine also voted to leave the BOE's bond portfolio at 375 billion pounds ($583.51 billion).
        The minutes record that for "a number" of officials, the decision not to raise rates was a close call. For these unnamed officials, the debt crisis in Greece, was "a very material factor" in voting to keep rates on hold.
        "Absent that uncertainty, the decision between holding bank rate at its current level versus a small increase was becoming more finely balanced," the minutes record, referring to the BOE's benchmark rate.
        The minutes imply that support on the panel for a rate increase soon is broadening.
        Previous minutes have recorded that only two officials were torn over whether to vote for a rate rise. The new language of "a number" of officials suggests that at least one other rate-setter has joined their ranks.
        Panel members Ian McCafferty and Martin Weale have for some months been signaling they may soon start pushing for a small rise in interest rates. In a recent speech, outgoing MPC member David Miles said he believes the case for a rate rise now is stronger than at any point in his six-year rate-setting career. He stands down after next month's meeting.
        Also, since the MPC met, Greece and its international creditors have reached an agreement that paves the way for a third bailout of the stricken Mediterranean nation. That may reassure those inching towards voting for higher rates that the overseas risks to the economy have lessened.
        Investors are doubtful, however, that a rate rise will command majority support until early 2016. BOE Governor Mark Carney said this month that he expected the question of when to start raising rates "to come into sharper relief" at the turn of the year.
        The Federal Reserve is expected to raises short-term interest rates in the U.S. this year, perhaps as soon as September.
        Write to Jason Douglas at jason.douglas@wsj.com and Jon Sindreu at jon.sindreu@wsj.com
        (END) Dow Jones Newswires

        July 22, 2015 04:37 ET (08:37 GMT)

#FX
#Forex
#SaleForex
#MPC_Minutes
#BOE_Minutes
#BOE_Rates
#ShowRateRise
#DebateIntensifying