Bank of England was united on rates cut

The Bank of England's monetary policy committee was united on cutting interest rates this month.

The minutes of the committee's October meeting show that all nine members agreed on the need for action to shore up confidence following the September 11 terror attacks.

The committee said the attacks in the US were likely to reinforce and prolong the weakness of the global economy.

Eight members, including the Bank's governor Edward George, supported the decision to cut rates from 4.75% to 4.5%.

Outside expert Sushil Wadhwani called for a bigger reduction of 0.5%.

The minutes are likely to raise expectations among City analysts that further rate cuts are on the cards.

The MPC members noted that, even before the terror attacks, "the outlook for the world economy had weakened by more than expected".

They warned that the labour market in Britain appeared to have reached a "turning point".

The committee said the prospect of rising unemployment was likely to depress consumer spending, which had been keeping the economy afloat.