Bank: Interest rates left on hold

Interest rate rises now look unlikely in the near future, according to analysis of the latest monetary policy committee minutes.

Published on Wednesday, the Bank of England documents showed that one of the two supporters of a hike on the committee has now changed his mind.

Following last week's decision to hold the cost of borrowing, and the release of the Bank's quarterly inflation report, the minutes provide the latest evidence of declining fears that the cost of borrowing will have to rise.

While the Bank is concerned that inflation may creep above its two per cent target in the short-term, opinion now appears to be coalescing around a view that it will not run out of control.

Economist Paul Tucker had voted in favour of lifting rates at the last meeting in April.

However he changed his mind in May, voting to keep the Bank's interest level at 4.75 per cent.

That left only Bank deputy governor Sir Andrew Large in favour of a rate rise, with the minutes showing he believed the move was necessary to keep prices growth within the two per cent target.