MPC

Interest rates in the UK could rise as early as August in response to a tightening labour market, according to Monetary Policy Committee member Martin Weale.

The Bank of England has said it is prepared to cut rates further and expand its quantitative easing (QE) programme should the current downward slide in inflation worsen.

Members of the Bank of England's Monetary Policy Committee (MPC) voted unanimously to keep interest rates on hold in January, the committee's latest minutes reveal, knocking expectations of a rise this year.

The Bank of England's Monetary Policy Committee remained split 7-2 against raising interest rates this month but took a gloomier view of the country's economic prospects.

Two members of the Bank of England's Monetary Policy Committee voted for a 25bps rate hike this month, latest minutes show - the first call for hikes in over three years.

The Bank of England won't be pressured into hiking the base rate quickly because inflation is likely to remain relatively low, according to economist David Miles.

Britain's recovery has become entrenched and the Bank of England should start to raise interest rates in the coming months to reflect the stronger economy, according to one of its most dovish policymakers.

The official UK interest rate could settle at an average of 3% in a few years, the outgoing deputy governor of the Bank of England has predicted.

The Bank of England may find monetary policy such as raising interest rates "the only game in town" to combat financial stability risks such as the housing market, the deputy governor has warned.

The Bank of England looks set to leave interest rates on hold again this week, but a hike before the General Election is seen as increasingly likely.