The Bank of England again voted 8-1 to keep interest rates on hold in January, dashing hopes that some members of its Monetary Policy Committee might signal that rates should come down next month.
The minutes, released yesterday, showed that, as in December, only Stephen Nickell voted to cut interest rates, citing below-trend growth and rising unemployument. His view was not shared by the rest of the MPC, who felt that growth had probably picked up in line with the Bank’s November forecast, with the service sector and housing market appearing stronger than expected. The vote made a cut in rates next month, which some analysts have forecast, appear less likely.