MPC decision was unanimous

The Bank of England's Monetary Policy Committee (MPC) voted 9-0 in favour of an interest rate cut this month, according to minutes released today by the Bank of England.

City analysts had expected several MPC members to vote against the decision, with market opinion itself only shifting late in the day on the back of weaker than expected economic and housing data.

However, the results suggest that further rate cuts will now take place in the very near future – perhaps as soon as January.

"It had been expected that the decision was much closer, with three or four members voting against the cut," confirmed Richard Snook, economist at the Centre for Economics and Business Research.

"This provides a strong signal that the Bank is now willing to take much stronger action to counteract the credit crunch and paves the way for further interest rate cuts in the New Year," Mr Snook added.

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