The Bank of England held interest rates at their record low of 0.5 per cent, as the majority of its policymakers remain unconvinced on the case for a rate hike.
The BoE’s Monetary Policy Committee also voted to keep the central bank’s stock of assets purchased under the quantitative easing programme at £375bn.
The minutes of the meeting, released in two weeks’ time, will show whether there was any further disagreement on the committee after last month’s surprise split - the first since 2011.
Two out of the MPC’s nine members, Martin Weale and Ian McCafferty, voted in August to raise rates by 25 basis points, on the grounds that wage growth could be lagging the improvements in the labour market and argued “it was desirable to anticipate labour market pressures by raising the bank rate in advance of them.”
The two external members also thought an early rise would help to ensure rates increased gradually instead of suddenly.
Whereas the majority felt there was “insufficient evidence of inflationary pressures to justify an immediate increase”.
But most city economists are not expecting a rate rise until next year, with none of the 42 polled by Reuters forecasting that rates would change today.
James Knightley at IMG said that the “hurdle for a rate rise remains high” and he suspected the two dissenters from last month would remain in the minority for a while yet.
“The more mixed macro picture coupled with concerns about eurozone growth – the UK’s largest trade partner – suggest that in the absence of upside activity data shocks the majority will continue to opt for the status quo in the next few months,” he said.
