By Jonathan Davies

The Bank of England voted unanimously in favour of keeping interest rates on hold at 0.5% earlier this month.

Minutes from the meeting of the Monetary Policy Committee (MPC) showed that all nine members voted to keep interest rates on hold.

Two members, Martin Weale and Ian McCafferty, had voted in favour of raising interest rates to 0.75% since August.

The minutes also showed the MPC discussed how they thought adjusting interest rates may cause low inflation to continue.

Last month, inflation fell to 0.5%, well below the Bank and government's target of 2% and a 14 year low.

Jeremy Cook, chief economist at World First, said: "While we have to wait until next month’s Quarterly Inflation Report to see what the Bank of England is truly thinking about inflation, it has become clear that there is a “roughly equal chance” that inflation could dip below the zero level within Q1.

"It seems that the Bank of England does not seem as prepared to look through these falls in headline inflation as the Federal Reserve, for example, and is therefore happy to lean on the prospects of further falls in wage demands to justify a loose monetary policy."

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