Bank split 7-2 on interest rate rise

The Bank of England Image copyright AFP

The Bank of England's Monetary Policy Committee (MPC) was divided for the second consecutive month over interest rate policy, latest minutes show.

At the meeting on 3-4 September, Ian McCafferty and Martin Weale voted to raise rates to 0.75% from 0.5%, as they had in August.

It means the nine-member MPC voted 7-2 to hold interest rates at their historic low of 0.5%.

Interest rates have been unchanged since March 2009.

Before last month's meeting, there had not been a split on the MPC since July 2011.

"There seems to be very little in the short term that would necessitate an interest rate rise. It would be no surprise if a rate rise moves back to later in 2015," said Peter Hemington, a partner at BDO LLP.

"But there is an aura of uncertainty around interest rates at the moment. The views of economists as to when a rate rise will occur vary enormously and this is reflected in [the MPC's] 7-2 split."

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