The Bank of England's Monetary Policy Committee (MPC) voted 7 to 2 in early November to hold interest rates at their current level of 5.75%, it was revealed today.
Deputy governor John Gieve and David Blanchflower were the only members of the committee to vote for a cut in interest rates.
Minutes from the MPC’s meeting reveal most members have not yet seen sufficient evidence of the credit crunch hitting UK firms and consumers.
The MPC was also wary of making a cut too soon, fearing that it would lead to anticipation of further rate cuts and cause firms and individuals to continue adding to their debt.
However, analysts still feel a rate cut is likely in early 2008, with some predicting rates could fall as low as 5% within the next twelve months.
Gieve and Blanchflower reportedly wanted to make a cut in interest rates because of the ongoing turmoil in world financial markets and the impact of the credit crunch on consumers and the economy.
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