Hawks on the Bank of England’s rate-setting committee could press again for a rise later this year, minutes of this month’s meeting have revealed.
Ian McCafferty and Martin Weale last month both dropped their call for the first rate rise in more than seven years as the Bank’s official inflation benchmark plunges to negative territory.
The monetary policy committee voted unanimously to hold rates at 0.5% in February.
But the minutes said that for “two members, the immediate policy decision remained finely balanced… there could well be a case for an increase… later in the year”.
Another member — likely to be dove David Miles — said the next change in policy was “roughly as likely to be a loosening as a tightening”.
Capital Economics’ Vicky Redwood said: “The MPC is more divided about the next move than the unanimous vote may suggest.”
The minutes were published as fresh data showed that total pay in Britain, including bonuses, rose by a faster-than-expected 2.1% in the three months to December.
Wage growth is closely watched by the Bank of England, which considers pay when makes interest decisions.
