MPC in unanimous vote to freeze rate

City A.M. Reporter
The Bank of England's Monetary Policy Committee (MPC) voted unanimously to keep interest rates on hold at its August meeting.

Two members who had regularly voted for an increase to keep inflation down changed their views based on the weak economic recovery.

The vote means interest rates are likely to stay at the current record low of 0.5 per cent for the foreseeable future.

The Bank of England has held rates there since March 2009.

Minutes from the monthly meeting showed MPC members Spencer Dale and Martin Weale voted to maintain rates rather than raise them. In the previous six meetings both had voted for higher borrowing costs.

Last month, the Bank of England voted 7-2 in favour of keeping rates on hold, and economists had expected this pattern to be maintained.