Responding to the release of the MPC minutes today David Kern, economic adviser to the British Chambers of Commerce, said:

“We welcome today’s MPC minutes which effectively signal that higher UK interest rates are now off of the agenda. 

“The minutes recognise that higher inter bank rates are in effect a tightening in monetary policy.  Therefore any need that there might have previously been for higher rates no longer exists.

“Monetary conditions are also now tighter than they were before the credit crisis started.  Therefore, we believe that the MPC may have to go further and acknowledge that, given the growing risks facing businesses, a small cut in interest rates may be needed in the not to distant future.”