Rate-cut supporting MPC member may be alone

Bank of England monetary policy committee (MPC) Member David Blanchflower has issued an urgent appeal for interest rates to be reduced.

In an interview with the Guardian, Mr Blanchflower stated that he believes Britain is already entering a state of recession.

He added: "It's not too late to stop it but we have to act right now. Monetary policy has been far too tight for too long."

However, according to a Reuters poll of analysts the voting in this month's meeting on the question of the base rate, which will be published with the minutes tomorrow, are likely to show that the other eight members voted for a hold.

The Guardian further speculated that there may even have been a three-way split in the vote, with some supporting a rise in rates.

Either situation could make the prospect of lower mortgage rates more remote, denting the hopes of anyone planning to take one out.

The last base rate change was the trimming from 5.25 per cent to five per cent in April this year.