Minutes from the Bank of England's Monetary Policy Committee (MPC), released today, have raised hopes the Bank might cut interest rates in the new future.
The minutes followed reports yesterday that inflation had remained stable at 1.8%, just inside the Treasury’s target of 2%.
Of the nine MPC members, eight voted to keep rates steady at 5.75%, saying they wanted to assess the full effects of recent financial market turmoil.
The remaining MPC member, David Blanchflower, voted to cut rates to 5.5%, boosting optimism that the Bank might cut rates before the end of the year.
Inflation measured by the Consumer Prices Index (CPI) remained stable in September at 1.8%, with rising food prices offset by falling energy bills.
The Retail Prices Index (RPI) measure of inflation, which includes mortgage payments, fell from 4.1% to 3.9% in September.
Many analysts are now predicting a November rate cut, which will be welcome news for homeowners struggling to meet their mortgage payments.
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