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Heads of English Central Bank are three opposing views on future monetary policy, some held to higher interest rates in order to ukroti inflation, and others - to reduce them, to prevent a recession, shows the minutes of the meeting of that the interest rate was left at the level of 5 percent.

Governor Marvin King and 6 Members of the Committee on monetary policy have supremacy in the discussion main interest rate remains 5 percent, it is clear from the report of held on 7 August meeting. Timati Besliy has voted to increase interest, stating that preventive move will stabilize inflation expectations. David Blenchflauar nastoyaval someone is poor because of a reduction of the bank forecasts for growth. This is the second such split in the months since, reported Bloomberg.

King said that the economy is facing a “difficult and painful adjustment” this year with the delayed growth and growing consumer prices. While Britain’s economy nearing its first shrinkage since the early nineties onwards, inflation is twice more than zalozheniya target of 2 percent.

Last week King said that economic growth will be “broadly zero” in the next few quarters and did not rule out the possibility of recession. British companies have the lowest expectations for growth in production since 2001, shows a survey of the Confederation of Industry in Britain.

Various indicators give signals that the economy may have already suspended their growth. The growth of monetary supply in the United Kingdom in July slowed less than economists’ expectations, today’s data showed the central bank. The monetary aggregate M4, izmervasht money in circulation and deposits in banks increased by 0.9 percent in July after rising from 1,8 percent in June. Economists expected growth of 0.5 percent, a poll shows Bloomberg.

Presenting the estimates of the Bank for the quarter, 13 August King said that inflation will reach around 5 percent in the coming months and may fall below the target level of the bank of 2 percent after 2 years if the primary interest remains unchanged. Consumer prices increased by 4.4 percent in July compared to same period last year.

Zabaveniyat growth and high inflation adversely affected the image of Prime Minister Gordon Brown.

The budget deficit of the country has svil in July to its lowest level from 2005 onwards because of depleted tax revenues following the economic crisis.

Today’s report suggests that the Central Bank is not yet ready to support the economy with lower interest levels. At a meeting this month were discussed as the reduction, and increase of interest. The reduction of interest may not lead to inflation if the economy is slow enough, although this will create a risk of higher inflation, the report shows. Raising in turn could unnecessarily harm growth.

British pound fell to 1.8542 dollars at 13:05 today to 1.8658 dollars yesterday. He declined by 6 percent against the dollar this month after investors increased estimates of lowering interest rates. At 16:00 hours Bulgarian time a pound is exchanged for 1.8593 dollars.