Bank of England remains against raising rates

Minutes from the October meeting show the majority of the Bank of England’s Monetary Policy Committee (MPC) remains against raising interest rates.

At the meeting on 7-8 October, MPC members voted 7-2 to keep interest rates at a record low of 0.5%.

The minutes said that for most members, there remained “insufficient evidence” of inflationary pressure to raise interest rates.

Senior economist Ben Brettell at Hargreaves Lansdown said “given the deterioration we have seen in economic conditions, it is perhaps surprising they didn’t cross the fence and join the majority voting to hold rates at 0.5%,”

“I can’t see the logic in voting for higher rates at present. I expect them [interest rates] to remain on hold until mid-2015 at the very earliest, and possibly not rise until much later in the year,” he added.

Members of the MPC would have seen latest UK inflation data, which showed that inflation fell to a five-year low of 1.2% in September.

Interest rates have been unchanged since March 2009.