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MPC votes 7-2 to keep rates on hold

The Monetary Policy Committee stood pat on policy with fewer of its members calling for an interest rate hike than had been expected.

Seven out of nine members of its decision-making body, the MPC, voted in favour of keeping Bank Rate at 0,1%, with the remaining two voting for a hike.

Economists at Barclays Research had anticipated that four MPC members would back calls an interest rate hike.

Similarly, only six members voted in favour of Bank continuing with its bond purchases, the same as the last time around, with the target for those unchanged at £875bn, whereas all nine had been expected to do so.

All nine did however vote to maintain the stock of investment grade corporate bond purchases at £20bn.

In response, as of 1258 GMT cable was trading 1.03% lower to 1.3546, alongside an almost eight basis point drop on the 10-year Gilt to 0.997%.

— More to follow —

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