By Jonathan Davies
Interest rates have been kept at 0.5% for another month, the Bank of England has confirmed.
However, one member of the bank's Monetary Policy Committee (MPC) - the body that sets interest rates - voted in favour of raising interest rates.
The Bank of England also revised the projected path of interest rate rises. By autumn 2018, it expects interest rates to be at 1.7%, 0.25% higher than forecast in May. Based on that timeline, the Bank is expected to increase interest rates at 0.25% per quarter.
Ian McCafferty, who was one of two members to vote for a rise last year, was the only person to vote in favour of raising interest rates.
The Bank of England's quantitative easing programme was maintained at £375 billion. The MPC voted unanimously on the matter.
The minutes from the MPC meeting show that the possibility of an increase in interest rates this year is "muted".
Martin Beck, senior economic adviser to the EY Item Club, said: “The real surprise in today’s MPC minutes is that there was only one dissenter. In fact, the MPC now appears to be split in three distinct camps with one member voting for a rate hike; ‘some’ other members not far off joining in; and then the majority content to sit tight.
There is no suggestion that the majority of members will vote for rate hikes any time soon. They appeared to play down the pickup in wage growth, pointing to the influence of bonuses, and there is clearly a concern that the appreciation of the pound is causing a tightening of monetary conditions on its own."
The minutes also show that the Bank of England believes falling energy prices will continue to keep inflation close to zero until the middle of next year, potentially suggesting that interest rates will not be increased until then.
"Nonetheless, a range of measures suggest that medium-term inflation expectations remain well anchored," the minutes say. "There is little evidence in wage settlements or spending patterns of any deflationary mindset among businesses and households."
The report was announced as part of 'Super Thursday', the first time the decision on interest rates, the meeting minutes and the Bank's quarterly economic forecast on the same day.