Committee vote leads to UK interest rate cut predictions

The prospect of a cut in UK interest rates loomed larger today as it emerged that four members of a key Bank of England committee voted for a reduction this month.

Concerns about slower output growth and consumer spending prompted four members of the UK's Monetary Policy Committee’s - Kate Barker, Charles Bean, Stephen Nickell and David Walton - to vote for a quarter percentage point cut to 4.5%.

They argued that the risks of below-target inflation in the medium term appeared to have risen and that early action would reduce the risk that greater changes in rates would be needed later.

Uncertainty about the potential duration of the consumer slowdown persuaded the other five members of the committee to vote for a hold in rates.