TWO HAWKISH policymakers at the Bank of England failed to convince the rest of the monetary policy committee (MPC) to vote for a rate hike for the second month running, the minutes of its September meeting showed yesterday.
The MPC is split over the strength of the recovery, and the timing of any future increase in wages and prices.
This month’s meeting saw another seven-two vote to hold rates at 0.5 per cent and the stock of assets purchased at £375bn.
The Eurozone is still holding growth back, the majority said, and UK wages are growing too slowly to merit an increase in interest rates.
Ian McCafferty and Martin Weale voted for a 0.25 per cent rate hike.
Strong growth and jobs figures were given by them as evidence the economy is absorbing spare capacity rapidly and so pay could spike soon.
“It still seems likely that the MPC will be cautious and hold off raising rates until early next year,” said Samuel Tombs at Capital Economics.