MPC voted unanimously for rate hold - but hints at more QE

Members of the Bank of England's Monetary Policy Committee (MPC) voted unanimously to hold rates at their historic low and maintain the quantitative easing (QE) programme at £275bn - but they indicated more QE could be on the way.

Minutes from the December meeting show all nine members voted to hold interest rates at 0.5% and keep its asset purchase programme at the current level.

In October, the Bank ramped up its QE scheme by £75bn amid turbulent economic conditions.

Although members resisted a new round of stimulus this month, the minutes noted a further expansion of QE may be warranted soon.

"Some members continued to note that the balance of risks to inflation in the November inflation report projections meant that a further expansion of the asset purchases programme might well become warranted in due course," the minutes said.

Economists have pencilled in a further round of QE in February.

Meanwhile, whilst the MPC expects inflation - currently 4.8% on the CPI index - to fall sharply next year, members are divided over how quickly prices will fall.