Bank of England holds interest rates at 0.5%

In turn, with arguably the second most important policymaker at the BOE (besides the Governor himself) joining the hawks, odds for a rate hike in August - when the next Quarterly Inflation Report is released - have jumped from 48% at the close yesterday to 68% today, per overnight index swaps.

The Bank's ratesetters voted 6 to 3 to hold rates rather than the expected 7 to 2 result, as the Bank's chief economist Andy Haldane joined those calling for an immediate rise.

However, an August rise is by no means a done deal and economists are split on whether rates will even go up this year.

The MPC said that the poor economic growth figures of the first three months of a year was likely to prove "temporary" and that the speed of growth would pick up. Instead of interest rates needing to rise to about 2% as the Bank had previously argued, it said they would now only need to reach about 1.5%.

The interest rate decision comes before Carney gives his penultimate Mansion House speech in the City of London on Thursday night, alongside the chancellor, Philip Hammond, which will be watched closely for clues over the Bank's future policy decisions.

Minutes from the meeting showed that the Banks chief economist Andy Haldane has joined two other members of the rate-setting committee in voting for an interest rate hike.

"A number of indicators of household spending and sentiment have bounced back strongly from what appeared to be erratic weakness in Q1 [January to March], in part related to the adverse weather".

"Employment growth has remained solid".

Ben Brettell, senior economist at Hargreaves Lansdown, said: 'Today's decision was always expected to be one of no change, with even those who think a rate rise is coming focusing on the Bank's August policy meeting as the most likely candidate for an upward move.

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