BOE voted 6-3 at the rate of deduction as majority noted "inconvenience".

April 20, 2011, 4: 57 pm EDT by Scott Hamilton

(Updates with comment from Economist in paragraph 13).

April 20 (Bloomberg) - officials of the Bank of England voted 6-3, to keep interest rates on hold them this month, as the majority said that the data on the economy in the previous month probably "for the inconvenience."Andrew Sentance maintained its call for an increase in the rate of interest reference of 1 percent from a low record of 0.5%, while Martin Weale and Spencer Dale wanted a move to 0.75%. The other members of the Policy Committee monetary six, including Governor Mervyn King, voted to keep the rate. Adam Posen maintained his appeal for purchases of bonds more. "It was still too early to know if the slowdown in growth towards the end of 2010 was temporary or if weakness in contemporary indicators of household spending announced longer weakness,"according to the opinion of the majority of the Committee"published in the minutes of the April 7 decision today in London. "But the news in the course of the month on demand and activity was probably to the downside."The pound sterling has reduced its gains against the dollar after the report. The minutes indicate the other members of the Group of experts may be reluctant to change their point of view and join three officials seeking a rate increase, so even that the Central Bank warns a slowdown in inflation in March was probably temporary. He sees a "significant risk" that the growth of prices, which facilitated at 4% in March, will accelerate to more than 5% in the short term.The pound dropped as much as 0.3 per cent against the dollar after the minutes have been released. He was traded at $1.6328 from 9: 40 London, little changed the day.Majority of RiskThe of the increase in the rate of the MPC said then that there is a risk of increased inflation expectations becoming entrenched in the wage claims, no there was "no evidence yet of this crystallization".They said that an increase in interest rates "can adversely affect the confidence of consumers, leading to an impact exaggerated expenses."The Committee noted the inflation risks "If there is a further transfer of the depreciation of sterling" and a potential impact on wages. There are risks downward not picking not enough to offset the impact of squeeze excess capacity to demand alternative and the Government budget.The opinion of the central Committee "remained a margin large capacity reserve in the economy was likely to persist for some time and would push down on inflation in the medium term as the impact of factors temporarily stimulate inflation declined.".Mixed DataWhile U.K. inflation is the target of 2% of the double Bank and rising costs of products can exert additional pressure on prices, the Committee was also to assess the impact on the recovery of squeeze the Government budget and a downturn in consumer confidence. Tesco Plc, the largest chain of supermarkets in the United Kingdom, said yesterday he expected that the internal market remain "difficult". "" Data on production in the month had been mixed, "the minutes said. "Measures of consumer confidence indicators and household spending had the two remain low."Investors pushed the Paris on the first increase in the rate of interest in November, according to data compiled by Tullett Prebon Plc. "An increase in the rate of one quarter-point by July had been assessed by as early as 8 April, depending on the sterling overnight interbank average or Sonia futures contracts"."The data has been quite mixed for a month and we do see not the resumption of the first being solid quarter that was scheduled," said George Buckley, Economist at Deutsche Bank AG, London. "We have as the first hiking August."Posen ViewFor Posen, data remains consistent with the view that the impact of inflation on wage and price expectations would be less supported by the Central Bank in its report of February Inflation. He "recognized" the risk that a persistent increase in expectations of inflation or pressure on world prices could prevail over the forces pushing down inflation, but that "does not see this as a material risk."Officials will have an initial estimate of gross domestic product Q1 growth at their next policy meeting on May 5. They will also have new shoots and inflation forecasts, King will publish at a press conference, six days later.The National Institute of Economic and Social Research view on 6 April, the economy grew by 0.7% in the first three months of the year. Taking into account the 0.5% GDP drop in the fourth quarter, the average growth rate across the two quarters was 0.1%, according to the Institute, whose clients include the Central Bank.

-Editors: Fergal O'Brien, Craig Stirling

To contact the reporter on this story: Scott Hamilton at the shamilton8@bloomberg.net London

To contact the editor responsible for this story: Craig Stirling cstirling1@bloomberg.net

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