Weaker-than-hoped-for data on the U.K. economy, released on Wednesday, is likely to have tempered the case for a rate rise. Factory output declined by 0.4 per cent in July, worse than the 0.1 per cent gain forecast by economists, and the goods trade deficit widened sharply in July, to £11.1 billion ($17 billion), the biggest shortfall since last July.
The recent stock market turmoil in China, and its potential impact on the U.K., which has actively pursued China as a trading partner in recent years, was also in focus. The MPC concluded it was "too early" to judge the full impact of increased worries about China, but warned of the dangers of weakening world trade and the exposure of some U.K. banks to emerging markets.
There are also concerns about "some underutilized resources" in the U.K.'s economy, where inflation has stayed well below the MPC's 2 percent target. Much of this can be accounted for by low food, oil and import prices.
- By CNBC's Catherine Boyle