MPC votes eight to one in favour of rate hold

Members of the Monetary Policy Committee voted eight to one in favour of holding the base rate at 5% this month.

The lone dissident was David Blanchflower, who called for rates to be cut to 4.5%.

Blanchflower has consistently called for reductions to the base rate, this month he upped his reduction from 0.25% in August to 0.50% for September.

Blanchflower believes the current slowdown may be made worse by the way financial institutions react to the increased fragility of the financial system.

He also voiced concerns that missing the inflation target at a time of low output and rising unemployment risked damaging the credibility of the monetary framework.