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| Bank of England remains against raising rates | |
| (35 minutes later) | |
| The majority of the Bank of England's Monetary Policy Committee (MPC) remains against raising interest rates, minutes from the October meeting show. | The majority of the Bank of England's Monetary Policy Committee (MPC) remains against raising interest rates, minutes from the October meeting show. |
| At the meeting on 7-8 October, MPC members voted 7-2 to keep interest rates at a record low of 0.5%. | 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. | The minutes said that for most members, there remained "insufficient evidence" of inflationary pressure to raise interest rates. |
| Ian McCafferty and Martin Weale again voted to raise rates to 0.75%. | Ian McCafferty and Martin Weale again voted to raise rates to 0.75%. |
| "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%," said Ben Brettell, senior economist at Hargreaves Lansdown. | "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%," said Ben Brettell, senior economist at Hargreaves Lansdown. |
| "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. | "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 the latest UK inflation data, which showed that in September, inflation fell to a five-year low of 1.2%. | Members of the MPC would have seen the latest UK inflation data, which showed that in September, inflation fell to a five-year low of 1.2%. |
| That rate - as measured by the Consumer Prices Index - is the lowest since September 2009, when it was 1.1%. | That rate - as measured by the Consumer Prices Index - is the lowest since September 2009, when it was 1.1%. |
| Interest rates have been unchanged since March 2009. | Interest rates have been unchanged since March 2009. |
| Gloomy outlook | |
| Last week, the chief economist at the Bank of England, Andrew Haldane, said interest rates should remain low to avoid long-term economic stagnation. | |
| In a speech he was downbeat on the UK economy because of weaker global growth, low wage growth and financial and political risks. | |
| "Put in rather plainer English, I am gloomier," Mr Haldane told local business leaders in Kenilworth, Warwickshire. | |
| "This implies interest rates could remain lower for longer, certainly than I had expected three months ago." |