The minutes of the latest Monetary Policy Committee (MPC) meeting indicate that a cut in interest rates is more likely to occur in January or February, rather than in December, one expert has claimed.
Last month, the MPC voted to keep rates on hold at 5.75 per cent by a seven to two majority. Dissenting voices who argued for an immediate cut in rates were David Blanchflower and deputy director Sir John Gieve.
Experts thought that the other deputy director, Rachel Lomax, would be the one to sway and argue for a cut in rates.
"The minutes of the last Monetary Policy Committee (MPC) meeting show that despite external calls for an immediate cut in interest rates, the majority of committee members felt that there is still time to wait and see whether the economy is really slowing to the degree needed, before taking action and cutting rates," says Drew Wotherspoon of John Charcol.
"The company, which is not averse to the odd bit of negative publicity, has taken the bold step of increasing its SVR outside of a Bank Rate increase – indeed, it has done it at a time where the universal opinion is that rates will be going down," Mr Wotherspoon added.