UK interest rate cut looking more likely

The possibility of a reduction in interest rates looked more likely today when it emerged two members of a key Bank of England committee voted for a cut this month.

Concerns over slower economic growth and a downturn in consumer activity prompted the surprise move by the Monetary Policy Committee’s (MPC) Charlie Bean and Marian Bell.

They said a 0.25% cut in rates might have ruled out the need for a larger reduction in the future.

Their arguments were outweighed by the rest of the committee, which voted 7-2 to leave the cost of borrowing on hold at 4.7% for the 10th month in a row.

Many market watchers had expected a unanimous vote for a hold – or even for one member to have argued for a rise.