London — Bank of England chief economist Andy Haldane unexpectedly threw his support behind an immediate interest rate increase, defying the majority of policy makers who voted to keep the rate unchanged. The monetary policy committee held the bank rate at 0.5%, as predicted by all 61 economists in a Bloomberg survey. But in a surprise a 6-3 vote, Haldane joined Ian McCafferty and Michael Saunders in calling for a quarter-point hike. That is the first time a Bank of England chief economist has dissented since 2011. Policy makers led by governor Mark Carney also voted to change the guidance on when they will consider reducing the stock of debt purchased in the bank’s quantitative easing programme. They now say they will not consider selling the stock until the key rate reaches 1.5%, versus 2% previously. Thursday’s decision leaves the door wide open for a rate increase at the bank’s next meeting in August. Such a move was given about a 50% possibility by investors before the meeting,...
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