LONDON (AFX) - Bank of England deputy governor Sir John Gieve told the Financial Times newspaper in an interview that the Monetary Policy Committee considered raising interest rates for the second month in a row in September.
Speaking about the discussion at the meeting this month, he told the paper: 'The issue was should we move again,' adding that the decision to raise rates in August was 'clear-cut'.
The minutes to the September meeting -- released earlier this month -- did not mention a discussion on whether to raise rates.
Gieve said the August decision to raise interest rates was based on two factors.
Firstly, the worries they had previously about whether the economic recovery was going to become 'well-established' had now been allayed, with growth now running 'a little above trend'. Secondly inflation was 'about as high as it's been at any time since the Bank got independence'.
'Those two things came together and I thought it was a clear-cut decision. And on the whole everything that's happened since I think has confirmed that,' he told the FT. jessica.mortimer@afxnews.com jkm/slm COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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