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The Bank of England's Monetary Policy Committee (MPC) released its November meeting minutes on Thursday. 8 members voted to keep the central bank's monetary policy unchanged. Ian McCafferty voted to hike interest rate by 0.25%.
The consumer price inflation in the U.K. was -0.1% in September, below the central bank's 2% target. The BoE noted that the low inflation was mainly driven by lower prices for energy, food and other imported goods prices.
"The combined weakness in domestic costs and imported goods prices is evident in subdued measures of core inflation, which are currently around 1%," the minutes said.
The central bank said that the global outlook weakened.
"The outlook for global growth has weakened since the August Inflation Report. Many emerging market economies have slowed markedly and the Committee has downgraded its assessment of their medium-term growth prospects," the minutes said.
"While growth in advanced economies has continued and broadened, the Committee nonetheless expects the overall pace of UK-weighted global growth to be more modest than had been expected in August. There remain downside risks to this outlook, including that of a more abrupt slowdown in emerging economies," the central bank added.
The BoE noted the domestic economy remained resilient.
MPC members pointed out that the interest rate hike will be gradual when the Bank of England starts to raise its interest rate, adding that the decision will depend on the incoming economic data.
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