For the first time in nearly one year, the Banks MPC have not vote unanimously, with Paul Tucker, Bank Executive Director, voting against the eight other members, in favour of a rise in the repo rate to 5.0%.

The MPC noted that a change in interest rates at the February meeting would have surprised market participants, but Mr Tucker argued that such a move at the next meeting would make sense in the context of the latest inflation report forecasts, published last week.

A further rise in interest rates is likely to slow the housing market further.